The Energy Regulatory Commission (ERC) has ordered the suspension of the Wholesale Electricity Spot Market (WESM) for the Luzon region due to insufficient generation capacity in the grid.
The decision came after the National Grid Corporation of the Philippines (NGCP) placed the Luzon grid on Red Alert on Monday due to an energy deficit.
In response to the suspension, the ERC instructed the Independent Market Operator of the Philippines (IEMOP) and the NGCP to adhere to the relevant WESM Rules and the ERC Order from April 30, 2024, ensuring the proper operation of the market and power system.
The suspension is in accordance with the ERC Order “In the Matter of Declaration of Market Suspension During Red Alerts During the Summer Months of 2024,” issued on April 30, 2024, citing a breach of Article II Section 1.A of ERC Resolution No. 12, Series of 2018 entitled “A Resolution Adopting Amendments to the Rules in the Event of Market Suspension or Declaration of Temporary Market Failure and the Subsequent Market Resumption of the Operation of the Wholesale Electricity Spot Market (WESM),” due to generation deficiency.
The operation of the WESM will remain suspended until the ERC issues a Notice of Market Resumption.
