Photo credit: ERC

The Energy Regulatory Commission (ERC) met with ACEN Corporation on October 21 to gain a deeper understanding of Australia’s electricity market operations and regulatory framework, as part of its preparations for a study visit to the country.

During the technical briefing held at the ERC office in Pasig City, ACEN shared its experience in the Australian National Electricity Market (NEM), where it actively participates through its renewable energy investments. The discussion tackled price cap mechanisms, renewable energy integration, system reliability, and government policies that support the clean energy transition.

ACEN explained that Australia enforces a market price cap to protect consumers from excessive electricity prices, alongside a secondary cap to prevent sudden market spikes. These safeguards are comparable to those in the Philippine Wholesale Electricity Spot Market (WESM).

The company also discussed how Australia supports renewable energy development through long-term contracts and incentive programs that attract private investors while maintaining consumer protection. It further noted the 0-kilowatt threshold under the country’s Retail Competition and Open Access framework, which allows all consumers to choose their electricity suppliers.

Another key area of discussion was Australia’s electricity futures market, which enables participants to buy and sell power in advance—a mechanism that helps manage price volatility and promotes market stability.

According to the ERC, engagements such as this help the agency “gain valuable insights into how other countries balance market efficiency, renewable energy transition, and consumer protection.”

The briefing is part of the Commission’s broader efforts to strengthen regulatory capacity and align local market operations with international best practices.

What lessons from Australia’s electricity market do you think could work best for the Philippines? Join the discussion. 

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