The Energy Regulatory Commission (ERC) suspended Wholesale Electricity Spot Market (WESM) operations across the country’s three power grids on Thursday to mitigate energy supply risks and price volatility stemming from conflict in the Middle East.
The suspension follows Executive Order No. 110, Series of 2026, which declared a state of national energy emergency because of global fuel supply disruptions and rising oil prices.
The ERC said it received a Department of Energy (DOE) recommendation on March 25 to halt trading across Luzon, Visayas and Mindanao effective March 26.
Regulators observed that prices at the WESM were expected to rise by up to P4 per kilowatthour due to regional tensions. The ERC determined immediate action was required to ensure the adequacy and reliability of the power supply.
“In times of global energy disruption, our priority is clear: to protect Filipino consumers while ensuring that our power supply remains stable and reliable,” ERC chairperson Francis Saturnino Juan said.
“The temporary suspension of the WESM and the implementation of a modified administered pricing mechanism are necessary measures to cushion the impact of volatile fuel prices and safeguard the integrity of our power system,” he said.
The suspension will remain in effect until the commission and the DOE determine conditions are suitable for a safe resumption of market operations.
Trading was officially halted at 12:05 a.m. on March 26. During this period, the system will operate under DOE guidelines that prioritize renewable energy dispatch and fuel inventory conservation.
Market participants, including the Independent Electricity Market Operator of the Philippines and the National Grid Corp. of the Philippines, should comply with the interim measures.
The ERC said it consulting with stakeholders to finalize a Modified Administered Pricing Mechanism by April 1.
The proposed framework introduces technology-specific pricing to reflect fuel costs. Coal plants may receive a fixed rate, while natural gas plants will be paid based on contracted prices.
Renewable energy sources will operate under administered pricing with preferential dispatch, and oil-based plants will be compensated based on administered prices when used.
The commission said the modified pricing is necessary because historical market rates from January and February do not reflect current geopolitical constraints. It assured the public these measures are temporary responses to global disruptions.
 effective March 26, 2026, to control price volatility and ensure power stability amid Middle East tensions.){kind=link}