ERC: Negative Electricity Prices Registered Across All Major Grids

For the third time in just five months, the Wholesale Electricity Spot Market (WESM) has recorded negative electricity prices across all major Philippine grids—Luzon, Visayas, and Mindanao—highlighting both opportunities and emerging challenges within the country’s power sector.

According to the Energy Regulatory Commission (ERC), negative average prices were registered on December 25, 2024; January 1, 2025; and most recently, April 18, 2025. These rare occurrences were driven primarily by lower electricity demand during holidays and high supply availability, resulting in supply significantly outpacing demand.

In April, average supply reached 21,469 megawatts, compared to an average demand of 12,092 MW. This led to a negative spot market price of PHP -0.4014 per kilowatt-hour—a continuation of the trend observed during the previous holiday periods.

While negative pricing in the WESM can contribute to lower generation charges for consumers, the ERC noted that the actual impact on electricity bills will vary. It depends largely on each distribution utility’s supply mix and how much of its power procurement is exposed to the spot market.

However, persistent low prices present challenges—particularly for the Feed-in Tariff Allowance (FIT-All) fund, which supports incentives for renewable energy developers. The ERC warned that continued market softness could impair the fund’s ability to fulfill its payment obligations.

In contrast, the Reserve Market has seen sustained high prices, indicating ongoing concerns about system reliability and the need for standby generation. From April 14 to 20, 2025, average reserve prices were PHP 5,453/MWh in Luzon, PHP 12,859/MWh in Visayas, and PHP 14,763/MWh in Mindanao.

As of April 2025, coal remains the country’s dominant energy source, accounting for 63.23% of total generation, followed by natural gas at 14.34%.

ERC Chairperson and CEO Monalisa C. Dimalanta reaffirmed the Commission’s commitment to closely monitoring market trends to ensure that price signals remain reflective of real-time system conditions, while also protecting consumer welfare and supporting the long-term stability of the energy sector.

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