The Energy Regulatory Commission (ERC) has approved a total market fee of P0.0071 per kilowatt-hour (kWh), or equivalent to P3.3 billion, for the Independent Electricity Market Operator of the Philippines (IEMOP) and the Philippine Electricity Market Corporation (PEMC) for the operation of the Wholesale Electricity Spot Market (WESM) from 2025 to 2027.
The approved fee is lower than the P0.0087 per kWh that IEMOP and PEMC had applied for. The ERC also disallowed P50 million from IEMOP’s application.
The P0.0071-per-kWh total fee covers the operational, administrative and capital expenditure budgets of both entities, including critical IT and cybersecurity upgrades for essential WESM operations.
IEMOP, which operates the WESM, was approved P0.0040 per kWh, equivalent to P1.879 billion, while PEMC, the governing body of the WESM, was approved P0.0031 per kWh, equivalent to P1.327 billion.
“This approval is a key step in the ongoing reform of the electricity market. It ensures IEMOP and PEMC can operate sustainably and fulfill their mandates, balancing industry needs with accountability to consumers,” said ERC chairperson and chief executive Francis Saturnino Juan.
He said the decision is part of the ERC’s continuing efforts to promote a secure, competitive and consumer-oriented power industry.
Unlike in recent years, the ERC proactively approved a fixed market fee rate for the 2026-2027 fiscal cycle. The regulator said this advance notice is expected to facilitate superior budget planning and implementation by IEMOP and PEMC, leading to greater operational efficiency.
The ERC said the approved market fee ensures a reliable and transparent WESM by providing cost predictability for generators and guaranteeing the integrity of critical WESM functions such as pricing, settlement and data reporting.
By scrutinizing the budgets, the ERC said it ensures that fees are cost-reflective and spending is prudent, upholding its commitment to consumer protection and promoting price stability and reliable electricity delivery.
Under Section 30 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), the cost of administering and operating the WESM is recoverable through the market fee, which is approved by the ERC and collected from generators transacting in WESM.
