The Energy Regulatory Commission (ERC) has ordered the resumption of operations of the Wholesale Electricity Spot Market (WESM) across the Luzon, Visayas, and Mindanao grids, restoring market-based electricity trading effective May 1, 2026 at 12:05 AM.

The WESM serves as the country’s electricity trading platform, where generators sell power and distribution utilities, electric cooperatives, and suppliers procure supply based on real-time demand. Prices in the spot market fluctuate depending on generator offers, transmission constraints, and prevailing supply-demand conditions.

The resumption follows more than a month of suspended market operations, which began on March 26, 2026, amid surging global fuel prices and supply uncertainties linked to geopolitical tensions in the Middle East. 

During the suspension period, the Department of Energy (DOE) implemented Special Operating Guidelines (SOG) for system dispatch, prioritizing generating units to conserve fuel and temper price volatility. A Modified Administered Price (MAP) mechanism was also put in place to manage settlement outcomes.

The ERC said lifting the suspension is aimed at restoring transparency and efficiency in price formation, in line with its mandate under the Electric Power Industry Reform Act (EPIRA) to promote competition and ensure non-discriminatory cost allocation.

“After a thorough review, the Commission has concluded that resuming normal WESM operations is the most suitable course of action at this juncture. This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

The Commission noted that while emergency pricing measures helped stabilize the market during the disruption, extending these interventions could distort settlements.

“We observed that although the temporary pricing mechanism was effective in addressing the emergency, prolonging its use could lead to unintended charges in market settlements,” Juan added.

The ERC said it will continue to closely monitor spot market prices, fuel supply conditions, and overall grid reliability following the resumption of trading. It also signaled readiness to reimpose market interventions if warranted by prevailing conditions.

What are your expectations for electricity prices and market behavior as WESM trading resumes? Join the discussion.

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