The Philippines liberalised its energy market in the 1990s and created a wholesale electricity spot market in 2006. In these competitive electricity markets, it is vital that all participants have confidence in the way the market is being run and that there is full compliance with the rules. To help in this process, the Philippine Electricity Market Corporation (PEMC), which operates the wholesale electricity spot market, carries out annual operational audits.
In 2011, 2012 and 2013, PEMC tasked PA to carry out these audits. We were able to bring specialist expertise, over and above that which traditional audit firms could provide, by using our detailed knowledge of electricity market design and operations in a range of countries around the world.
Our team of experts examined all aspects of PEMC's operations including business processes and market systems relating to scheduling and dispatch, and clearing and settlement; as well as a review of the robustness of ICT systems and processes. This work both identified areas of compliance and provided recommendations on how to reduce future non-compliance. Our audits also made broader recommendations around improving the electricity market design to enable operational and economic efficiencies, and tightening the payment and collection processes to reduce the risk of payment default.
PEMC has implemented many of our recommendations over the three years we have worked with them. As a result, they have been able to improve business processes and controls and ensure market participants have confidence in the operation of the market.
“PA's display of expertise and professionalism is commendable. Their team's in-depth understanding of electricity markets meant they were able to quickly identify areas of non-compliance, make detailed recommendations for enhancements and give all participants confidence that the market is operating effectively. Ultimately, this helped us improve operational efficiency and become a world class market operator.”