The Department of Energy (DOE) has directed power sector stakeholders to immediately implement fuel conservation and prioritization measures following President Ferdinand R. Marcos Jr.’s declaration of a state of national energy emergency under Executive Order No. 110. The directive is intended to protect the stability of the country’s electricity supply while cushioning electricity price impact amid rising global fuel prices.
Signed by Energy Secretary Sharon S. Garin on 25 March 2026, the advisory covers generation companies, the National Grid Corporation of the Philippines, the Independent Electricity Market Operator of the Philippines, distribution utilities, electric cooperatives, ancillary service providers, and other WESM trading participants. It sets out urgent measures to conserve fuel inventories, manage dispatch more efficiently, and reduce the exposure of the power sector to external supply shocks.
As fuel prices continue to rise due to the Middle East conflict, initial simulations by the Independent Electricity Market Operator of the Philippines (IEMOP) estimate that average prices of getting supply from the WESM could exceed ₱9 per kilowatt-hour from the pre–Middle East conflict average WESM prices of ₱5 per kilowatt-hour or less. Similarly, power supply from bilateral contracts is likely to increase as prices of fuel escalate.
As such, the DOE called for the adoption of special operating guidelines for system dispatch to support the full utilization, where feasible and subject to system security requirements, of renewable energy resources, indigenous energy sources, and coal. Specifically, the full dispatch of indigenous sources and coal-fired power plants is projected to cushion the increase in WESM prices by up to ₱2 per kilowatt-hour.
The advisory sets out urgent measures to preserve fuel inventories, strengthen coordination on fuel availability, improve system dispatch under emergency conditions, and reduce the power sector’s exposure to external supply disruptions and elevated international fuel prices.
“As a net importer of oil, coal, and liquefied natural gas (LNG), we are acting with heightened discipline to preserve power system reliability in the face of escalating global fuel market volatility,” Energy Secretary Sharon S. Garin said. “This is a decisive intervention to protect the grid, manage fuel use responsibly, and ensure that essential electricity services remain uninterrupted.”
The advisory also directed generation companies to closely monitor fuel inventories, comply with their required 15-day fuel inventory, and immediately report any actual or potential fuel supply risks to the DOE for appropriate assessment and possible intervention.
In addition, generation companies were directed to explore feasible fuel alternatives to support cost mitigation and supply adequacy, including options for higher biodiesel blends for oil-based plants and coal blending, i.e. mixing different types of coal or co-firing, i.e. mixing coal with locally available feedstock typically biomass, for coal-fired facilities, subject to technical, operational, and environmental requirements.
The Department said these measures are intended to moderate the impact of sustained fuel price increases in the international market, which could otherwise place significant upward pressure on WESM prices.
For off-grid areas, the DOE called on utilities to use available generation efficiently, continue securing fuel supply, and implement demand-side management measures, recognizing the greater vulnerability of isolated systems to international fuel market disruptions.
The DOE emphasized that these actions form part of the government’s broader emergency response under EO 110 to safeguard the adequacy, stability, and affordability of energy supply during a period of heightened global uncertainty.
The Department said it will continue to monitor compliance closely, in coordination with the Energy Regulatory Commission, IEMOP, NGCP, and other concerned entities, and will take further action as necessary to preserve system reliability, maintain orderly market conditions, and protect consumers.
