The Department of Energy has ordered the full dispatch of indigenous energy sources and coal-fired power plants on Wednesday to cushion an expected surge in electricity prices following a declaration of a national energy emergency.
Energy Secretary Sharon Garin signed the advisory on March 25 after President Ferdinand Marcos Jr. issued Executive Order 110. The directive aims to mitigate a projected P2 per kilowatt-hour increase in Wholesale Electricity Spot Market (WESM) prices triggered by global fuel volatility and the Middle East crisis.
Initial simulations by the Independent Electricity Market Operator of the Philippines indicate average WESM prices could exceed P9 per kilowatt-hour, nearly double the pre-crisis average of P5 or less.
“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,” Garin said.
“This is a decisive intervention to protect the grid, manage fuel use responsibly and ensure that essential electricity services remain uninterrupted,” she said.
The order covers generation companies, the National Grid Corp. of the Philippines, the Independent Electricity Market Operator of the Philippines, distribution utilities and electric cooperatives. The Department of Energy called for special operating guidelines to support the full utilization of renewable energy and coal while maintaining system security.
Generation companies must now monitor fuel inventories to ensure a 15-day supply and report potential risks to the government immediately. The agency also instructed firms to explore fuel alternatives, including higher biodiesel blends for oil-based plants and coal blending or co-firing with biomass.
For off-grid areas, the Department of Energy urged utilities to implement demand-side management measures to protect isolated systems from market disruptions.
The agency, in coordination with the Energy Regulatory Commission, will monitor compliance to maintain orderly market conditions.
