The PEMC is a non-stock, non-profit corporation formed in 2003 and serves as the autonomous group market operator and WESM’s governing body.
PSALM is a government corporation created under Republic Act No. 9136, the Electric Power Industry Reform Act of 2001 . Among other mandates, it was set up “to manage the orderly sale, disposition, and privatization of the assets of the National Power Corporation and independent with the objective of liquidating all financial obligations and stranded contracts costs of the NPC in optimal manner.”
“EPIRA provides for the establishment of a spot market, whose rules are to be formulated by the DOE jointly with the industry participants. The said market would also be implemented by a group to be constituted by the DOE with representation from industry participants. “A market operator would implement spot market and be responsible for, among others, operating and administering the spot market and allocating resources to enable it to operate and administer the market in accordance with the Rules.
“Thus, EPIRA empowered the DOE, together with the industry participants, to develop the governance structure of WESM. This structure, as laid down in the Rules, empowered PEMC to investigate breaches of the Rules and act accordingly to ensure the members comply with them.