The Energy Regulatory Commission (ERC) has formalized taking into account scientific data into its regulatory movements by signing a Memorandum of Understanding (MOU) with the Department of Science and Technology – Philippine Atmospheric, Geophysical and Astronomical Services Administration (DOST-PAGASA).

The agreement, signed on February 26, allows the ERC to use live climate and weather forecasting data as the basis for suspending or resuming operations in the Wholesale Electricity Spot Market (WESM). This is achieved through an established collaborative framework that includes the creation of a formal data exchange mechanism- thus allowing the ERC to source data from PAGASA directly.

WESM is the electricity trading platform of the country, where power prices are decided by supply and demand. Extreme weather events, which are common for the Philippines, can affect both grid stability and generation availability. This fact makes timely regulatory decisions critical in keeping orderly market operations.

The partnership also benefits DOST-PAGASA as it enrolls the ERC into its Subseasonal-to-Seasonal (S2S) Climate Prediction Application. This is a tool that allows government agencies to be more prepared for extreme weather events, strengthening risk management and implementing anticipatory measures more effectively.

DOST-PAGASA Administrator Dr. Nathaniel T. Servando highlighted the agency’s commitment to supporting the regulator in adopting science-based approaches.

“We are confident that by working together, we can transform scientific knowledge into practical tools that enhance planning, improve resilience, and strengthen our institutions for the Filipino people,” Administrator Servando said.

Meanwhile, ERC Chairperson and CEO Atty. Francis Saturnino C. Juan emphasized the importance of sustained coordination across government institutions.

“This whole-of-government approach reflects our shared responsibility to ensure that public institutions work together in addressing the challenges posed by climate variability and change,” Chairperson Juan concluded.

As extreme weather events continue to affect power systems nationwide, how effectively can science-driven regulation improve market stability and protect electricity consumers?

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