WESM 101: What is the Wholesale Electricity Spot Market?
WESM 101: What is the Wholesale Electricity Spot Market?
Learn more about the role of the WESM in our daily lives with our educational series: WESM 101! The Wholesale Electricity Spot Market (WESM) is a centralized venue for fair and competitive…
Learn more about the role of the WESM in our daily lives with our educational series: WESM 101!
The Wholesale Electricity Spot Market (WESM) is a centralized venue for fair and competitive large-scale electricity trading where the price is based on the interaction of supply and demand. In our WESM 101, we aim to illustrate the electricity delivery process by likening it to the distribution of water to homes, with DUs and RES handling the logistics, bringing the water to the Philippine customers. Mabuhay Energy, as a participant in the WESM, plays a key role in providing competitively-priced electricity to contestable end-users in the Philippines through RCOA.
The WESM offers several features and functions.
Gross Pool
Liken the WESM to a pool of water where the market operator monitors the production of water into the tub (power plants), the amount of water that is being given to the participants like RES and DUs, and what price it is sold at, and more!
Locational Marginal Price
Marginal price is computed at each location to reflect transmission loss and/or congestion.
Net Settlement
Bilateral contract quantities transacted in the pool are settled outside the market. A bilateral contract quantity is the quantity in
Megawatt-hour (MWh) of energy sold by one Trading Participant to another through a bilateral contract that is declared in the WESM.
Mandatory Market
To engage in the market, electricity buyers and sellers must register with WESM.
Grid-connected entities such as electric cooperatives and DUs must also register to inject or withdraw power.
Sources: IEMOP.PH , Philippine Electricity Market Corporation
See how the process works
From eligibility assessment to ongoing management — here is what switching looks like.
How it works →Related Articles
Global Comfort Group Corporation’s Iconic Hotels, Malls Shift to Mabuhay Energy
Our goal is not only to generate savings but to provide better services to our customers. And, of course, with a very significant decrease in our electricity costs, we can provide competitive rates to our guests. Because as you know, currently, most equipment and facilities in hospitality rely on electricity," Manalo noted, emphasizing that the savings directly help maintain stable pricing for their hospitality and residential consumers despite rising market pressures.
Read more →Switching Electricity Suppliers: Documents Needed & What’s in a Retail Supply Contract
The documents you need to switch to a Retail Electricity Supplier (RES) under RCOA, what is inside a Retail Supply Contract, how long the switch takes, and your 5-business-day cooling-off rights.
Read more →
STI College Rewrites Its Energy Future with Mabuhay Energy
STI College Sta. Rosa switches to Mabuhay Energy under RCOA, gaining customized energy supply and the savings to reinvest into academic programs.
Read more →