advisories & notices

The Philippine Electricity Market Corporation (PEMC), as the Governance Arm of the Wholesale Electricity Spot Market (WESM), is initiating the Market Design and Operations Review (MDOR), a comprehensive assessment of the implementation of the Enhanced WESM Design and Operations (EWDO) covering the period from 26 June 2021 to 25 June 2026.

The MDOR aims to evaluate the effectiveness of the enhancements introduced under the EWDO and assess potential future improvements to market design and operations. The project will consist of the following study components:

1. Enhanced WESM Design and Operations Implementation Review; and
2. Feasibility Study on the Implementation of a Day-Ahead Market (DAM).

The conduct of the MDOR at this stage takes into consideration comments previously received from the Department of Energy (DOE) and various stakeholders during PEMC's earlier consultation on the project in 2023. Among the key observations raised were the recent commencement of WESM operations in Mindanao and the pending implementation of the Reserve Market at that time, which could have limited the basis for a comprehensive review. It was likewise suggested that the assessment consider the interactions among the EWDO, Reserve Market, Demand-Side Bidding, and other market developments relevant to the possible implementation of a Day-Ahead Market.

Taking these inputs into account, PEMC deferred the conduct of the review and refined the scope of the project. As currently proposed, the MDOR will be undertaken after five (5) years of EWDO implementation, three (3) years of WESM Mindanao operations, and more than two (2) years of Reserve Market operations, thereby providing a more robust basis for evaluation. Further, PEMC received the DOE's favorable endorsement for the continuance of the review on 26 November 2025. The attached draft TOR incorporates the comments and recommendations received from the DOE and other stakeholders during previous consultations.

As part of the preparatory activities for the engagement of an independent consultant, PEMC is conducting a stakeholder consultation on the attached Draft Terms of Reference (TOR) for the project.

We invite your organization to review the draft TOR and provide comments, recommendations, or other inputs that may assist in refining the project's scope, methodology, and expected deliverables. Your participation is important in ensuring that the review is thorough, objective, and reflective of the needs and experiences of WESM stakeholders.

Attached are the following documents for your reference:

1. Draft Terms of Reference for the Market Design and Operations Review (MDOR)
2. Template for Submission of Comments

Kindly submit your comments using the attached template on or before 21 August 2026 through email at mag.info@wesm.ph.

Should you have any questions or require further clarification, you may coordinate with the MDOR-TWG Secretariat through the email address provided above.

We appreciate your continued support and valuable contribution to the development of the Philippine electricity market.