The Philippine Rural Electric Cooperatives Association (PHILRECA) hosted a meeting between electric cooperatives from Eastern Visayas and officials from the Energy Regulatory Commission to discuss price volatility in the Wholesale Electricity Spot Market (WESM). The discussion shed a specific spotlight on line rental charges and recurring price movements.

The consultation, held on February 4, brought together PHILRECA, the Federation of Rural Electric Cooperatives of Region VIII (FRECOR VIII), and the ERC’s Market Operations Service (ERC-MOS). The meeting provided electric cooperatives (ECs) in Region VIII the opportunity to present their personal observations and analysis on WESM pricing and its impact on rates to the regulator.

During the discussion, ECs raised concerns over recurrent WESM price spikes and line rental charges, which they said continue to affect the cost of electricity passed on to consumers. PHILRECA noted that these pricing movements have occurred repeatedly and are not isolated incidents.

PHILRECA and FRECOR VIII also cited efforts by ECs to limit their exposure to the spot market and manage power costs within existing regulatory standards. However, they pointed out that price volatility remains largely beyond the control of distribution utilities, especially in areas with limited supply alternatives.

Electric cooperatives said that despite complying with procurement and regulatory requirements, these include measures such as undergoing the Competitive Selection Process (CSP), having Terms of Reference (TORs) reviewed by the National Electrification Administration, and securing Power Supply Agreements (PSAs) approved by the ERC, their exposure to WESM price movements still persist.

Officials from ERC-MOS contributed to the dialogue by acknowledging the concerns raised and sharing information on market monitoring, pricing behavior, and possible regulatory solutions. PHILRECA said the exchange highlighted the importance of coordination between regulators and electric cooperatives.

Other stakeholders present at the meeting included members of the National League of EC Finance Managers in the Philippines (NLECFIMAP), corporate planning managers from PECACORP, and legal advocates from Region VIII. PHILRECA said it will continue engaging regulators as discussions on market mechanisms move forward.

As electricity prices remain sensitive to spot market behavior, will continued consultations between regulators and electric cooperatives lead to adjustments in how WESM pricing issues are addressed?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.