NASECORE Seeks Transparency on Market Transaction Fees Charged in the Power Spot Market
The National Association of Electricity Consumers for Reforms, Inc. (NASECORE) has formally requested the Independent Electricity Market Operator of the Philippines (IEMOP) to disclose detailed information on the Market Transaction Fees (MTF) collected in connection with the operation of the Wholesale Electricity Spot Market (WESM).
The request, addressed to Engr. Robinson P. Descanzo, President and CEO of IEMOP, was made in the interest of consumer information, market transparency, and informed regulatory discussion, particularly as electricity consumers continue to experience elevated and volatile power prices.
Why Market Transaction Fees Matter
Market Transaction Fees are collected by IEMOP as part of the administration and operation of the WESM. While these fees are not always visible to consumers on their electricity bills, they form part of the overall cost structure of electricity, which is ultimately passed on to captive consumers, especially those served by distribution utilities and electric cooperatives.
NASECORE emphasized that greater transparency on how MTFs are computed, allocated, and recovered is essential to ensure that discussions on electricity prices are fact-based, properly contextualized, and fair to consumers.
Information Requested from IEMOP
To support a clearer public understanding of MTFs, NASECORE requested disclosure of the following:
- Market Transaction Fee Data and Collection
- The total MTF collected annually by IEMOP for the most recent available years;
- Breakdown of MTF collections by grid (Luzon, Visayas, and Mindanao); and
- The basis of MTF computation, including:
- The variables used (such as metered generation, offered capacity, or dispatched energy); and
- The rationale for the chosen allocation methodology.
- Allocation of MTF Between Contacted and Spot Market Energy
- Whether IEMOP maintains, or can reasonably derive, data distinguishing:
- MTF attributable to energy covered by bilateral contracts or Power Supply Agreements (PSAs); versus
- MTF attributable to energy traded through the WESM spot market.
- If no such differentiation exists, clarification on whether MTF is imposed uniformly on all metered generation, regardless of whether the energy is sold under ERC-approved PSAs or through spot market transactions.
- Studies or Reviews on MTF Design
- Copies of, or references to, any studies, internal reviews, board papers, or consultations conducted by IEMOP (or previously by PEMC) concerning:
- Differentiated treatment of MTF for contracted versus uncontracted energy; or
- The impact of MTF on electricity prices passed on to consumers.
- Clarification on Cost Recovery and Pass-Through
- A general clarification on whether MTF imposed on generators is economically recoverable through generation charges, including those embedded in ERC-approved PSAs supplied to captive markets.
NASECORE stressed that this request does not allege any wrongdoing on the part of IEMOP or market participants. Rather, it seeks transparency to help policymakers, regulators, consumer advocates, and the public better understand how market fees affect electricity prices.
Grounded on the Right to Information
The request was formally made pursuant to Executive Order No. 2 (s. 2016) on Freedom of Information, as the data sought consist of official records maintained by IEMOP in the performance of its mandate as market operator.
NASECORE expressed hope that the requested information can be released within the period prescribed under FOI rules, or that guidance be provided on applicable data-access procedures.
NASECORE’s Position
Electricity consumers deserve clarity—not only on generation prices, but also on market fees and institutional costs embedded in the power supply chain.
Transparency in Market Transaction Fees is a necessary step toward:
- Better public understanding of electricity pricing;
- More informed policy and regulatory discussions; and
- Stronger consumer protection in a volatile power market environment.
NASECORE will continue to engage relevant institutions to ensure that electricity pricing remains transparent, accountable, and consumer-oriented.