The Energy Regulatory Commission (ERC) has ordered the temporary suspension of the Wholesale Electricity Spot Market (WESM) across Luzon, Visayas, and Mindanao effective Thursday, citing energy supply risks and price volatility linked to the Middle East conflict.
The move follows Executive Order No. 110, s. 2026, which declared a state of national energy emergency due to global fuel supply disruptions and rising oil prices.
The ERC acted on a March 25 recommendation from the Department of Energy (DOE) to halt WESM operations beginning March 26. It noted that spot market prices—the trading floor for electricity—could rise by as much as P4 per kilowatt-hour amid ongoing tensions.
ERC chairman Francis Saturnino Juan said immediate regulatory action is needed to ensure a stable and reliable 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,” Juan said.
“The temporary suspension of the WESM and the implementation of a modified administered pricing mechanism are necessary to cushion the impact of volatile fuel prices and safeguard the integrity of our power system,” he said.
The suspension took effect at 12:05 a.m. on March 26 and will remain in place until the ERC, in consultation with the DOE, determines that normal operations can safely resume.
During this period, the power system will operate under special guidelines issued by the DOE, prioritizing renewable energy dispatch and fuel conservation.
All market participants, including the Independent Electricity Market Operator of the Philippines and the National Grid Corporation of the Philippines, have been directed to comply.
The ERC will also implement a Modified Administered Pricing Mechanism, targeted for finalization by April 1 after stakeholder consultations.
The proposed framework introduces technology-specific pricing: coal plants may receive fixed rates, natural gas plants will be paid based on contracts, and renewables will be prioritized under administered pricing. Oil-based plants will be compensated through administered prices when dispatched.
The ERC said historical market prices from January and February no longer reflect current conditions shaped by geopolitical tensions and fuel constraints.
The commission emphasized that the measures are temporary and meant to mitigate the impact of global energy disruptions.
Editor’s Note: This is an updated article. Originally posted with the headline: “ERC suspends WESM indefinitely amid energy emergency”
