Power for People Coalition (P4P) has questioned the decision of the Energy Regulatory Commission (ERC) to resume operations of the Wholesale Electricity Spot Market (WESM), warning that consumers may once again be exposed to volatile fuel-driven electricity costs.

The ERC recently lifted the temporary suspension of WESM, which had been imposed earlier as part of government measures addressing electricity price volatility linked to the ongoing Middle East conflict and global fuel market disruptions. The commission said the suspension had stabilized electricity prices during the height of market uncertainty.

The ERC had ordered the resumption of WESM operations after determining that market conditions had improved.

However, P4P argued that fuel prices remain elevated and that resuming normal market operations could worsen the burden on consumers already struggling with high electricity costs.

“We clearly cannot go back to business-as-usual, if the commission is to be true to its mandate of protecting consumers,” said Convenor Gerry Arances.

According to the group, higher prices of coal and liquefied natural gas (LNG) in the global market could translate into an estimated increase of at least Php5.00 per kilowatt-hour in generation charges within the Meralco franchise area.

P4P also criticized the continued implementation of pass-through charges tied to fossil fuel costs, arguing that corporations are able to transfer higher market costs directly to consumers through electricity bills.

“Rather than addressing public outcry over pass-through charges and continuing disconnections at this time of crisis, the ERC has instead doubled down on consumers’ vulnerabilities to additional expenses through resumption of the WESM,” Arances said.

The group also raised concerns over calls for stricter action against so-called “guerrilla” solar installations, arguing that distributed solar systems should instead be supported as a way to help consumers reduce dependence on volatile fuel-based electricity.

“Tapping our country’s abundant potential for solar power is one way to protect consumers from volatile pass-through charges of coal and gas,” Arances said, adding that solar installations should be guided by regulation rather than restricted.

P4P reiterated its call for the suspension of additional pass-through charges and the imposition of a moratorium on power disconnections amidst the ongoing energy crisis.

The debate over WESM operations comes as regulators and consumer groups continue to grapple with balancing market stability, fuel cost recovery, and consumer protection during a period of elevated global energy prices.

Should regulators prioritize stronger consumer safeguards as fuel-driven electricity costs remain volatile?

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