Power spot market back in operation

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May 2, 2026 | 12:00am

MANILA, Philippines —  The Wholesale Electricity Spot Market (WESM) resumed trading operations yesterday, a little over a month after trading was suspended amid surging global fuel prices triggered by the Middle East war.

The Energy Regulatory Commission (ERC) ordered the move against the backdrop of a fragile ceasefire, during which the country has seen three straight weeks of fuel price rollbacks at domestic pumps. 

ERC chairman and CEO Francis Saturnino Juan said lifting the market suspension is “the most suitable course of action at this juncture.” 

“This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” he said.

On March 26, the regulator halted electricity trading at the spot market as the global oil crisis threatened to push power prices higher by more than P5 per kilowatt-hour. 

In effect, administered prices were implemented to protect consumers from sudden spikes while keeping power producers financially viable to sustain reliable supply as the country faces an energy emergency. 

During the suspension, prioritization of power-generating units within WESM was also put in place to help conserve fuel. 

“We observed that although the temporary pricing mechanism was effective in addressing the emergency,  prolonging its use could lead to unintended charges in market settlements,” Juan said. 

WESM is the centralized venue for electricity trading, where generation companies sell power to distribution utilities, electric cooperatives and retail suppliers when needed. Prices are typically determined by supply and demand. 

Notably, the average WESM price in Luzon surged by over 50 percent in March, triggering a double-digit spike nationwide even as rates remained lower in Visayas and Mindanao. 

 Given the current circumstances, the ERC stressed that resuming normal WESM operations would “enhance transparency, prevent artificial settlement distortions and facilitate efficient price discovery.” 

Under the Electric Power Industry Reform Act, the ERC is mandated to monitor activities in the generation and supply of electricity to promote free market competition.