Power spot market trading suspended

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March 27, 2026 | 12:00am

Oil crisis seen to push electricity cost by P5/kWh

MANILA, Philippines — The Energy Regulatory Commission (ERC) has suspended spot market electricity trading as the global oil crisis threatens to push power prices higher by over P5 per kilowatt-hour (kWh).

In effect, a temporary pricing mechanism will be implemented for power purchased from the Wholesale Electricity Spot Market (WESM) during the suspension.

The administered prices aim to protect consumers from sudden spikes while keeping power generators financially viable to sustain reliable electricity supply, the ERC said.

ERC chairperson and CEO Francis Saturnino Juan said these measures are necessary to “cushion the impact of volatile fuel prices and safeguard the integrity of our power system.”

Global energy prices remain volatile as the month-long US-Israel war with Iran continues to damage critical infrastructure and disrupt supply flows in the Middle East.

Amid surging fuel prices, the Independent Electricity Market Operator of the Philippines estimates that power from WESM could exceed P9 per kWh, more than double the P3.50 per kWh recorded in February.

At the same time, power supply from bilateral contracts is also expected to rise due to higher fuel costs.

Given this, the Department of Energy (DOE) is pushing for the full dispatch of coal-fired plants and indigenous sources such as renewable power to help limit the potential rise in WESM prices by up to P2 per kWh.

“As a net importer of oil, coal and liquefied natural gas, we are acting with heightened discipline to preserve power system reliability in the face of escalating global fuel market volatility,” Energy Secretary Sharon Garin said.

Further, the DOE ordered power producers to strictly comply with the mandated 15-day fuel inventory and quickly report any actual or potential supply risks for immediate intervention.

They were also directed to explore other fuel alternatives to support cost mitigation and supply sufficiency.

“This is a decisive intervention to protect the grid, manage fuel use responsibly and ensure that essential electricity services remain uninterrupted,” Garin said.

These market interventions follow President Marcos’ issuance of Executive Order 110, declaring a state of national energy emergency amid heightened tensions in the Middle East.