The Energy Regulatory Commission (ERC) has moved to strengthen coordination with power generators as it works on interim market rules during the continued suspension of the Wholesale Electricity Spot Market (WESM).

In a consultative meeting held on March 26, the ERC met with the Philippine Independent Power Producers Association (PIPPA) to discuss the regulator’s proposed way forward, including the potential lifting of the WESM suspension and the introduction of a Draft Resolution on the Modified Administered Price under ERC Case No. 2026-006 RM.

The proposed framework is intended to serve as a settlement mechanism during the suspension period, maintaining core market operations while aligning with the Special Operating Guidelines issued by the Department of Energy (DOE). It introduces differentiated pricing and settlement approaches across generation technologies, designed to temper volatility and provide clearer regulatory signals while normal market trading remains halted.

Stakeholders expressed support for the publication of the draft resolution, viewing it as a stabilizing tool to support orderly market conditions and reduce price uncertainty during the ongoing suspension.

“Our objective is to ensure orderly market operations and mitigate undue price volatility during the market suspension,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said. “Through close coordination with power producers, we are putting in place appropriate pricing and settlement mechanisms to support a stable and transparent electricity market.”

The ERC said it remains committed to working with industry stakeholders to ensure continuity, transparency, and stability in the power market while balancing consumer welfare amid shifting energy sector conditions.

How should the Philippines balance market stability and price discovery while WESM remains suspended? 

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