The Energy Regulatory Commission (ERC) has ordered the immediate suspension of the Wholesale Electricity Spot Market (WESM) operations across the Luzon, Visayas, and Mindanao grids, effective March 26, 2026.
This decisive regulatory action follows the issuance of Executive Order No. 110, Series of 2026, which declared a state of national energy emergency in response to critical global fuel supply disruptions and escalating oil prices triggered by ongoing geopolitical conflicts in the Middle East. The suspension was enacted following a formal recommendation from the Department of Energy (DOE) on March 25, 2026.
The market suspension commenced at interval 0005H on March 26, 2026. During this period, the Philippine power system will bypass standard market bidding and operate under Special Operating Guidelines (SOG) issued by the DOE. These guidelines focus on:
-
Prioritizing Renewable Energy: Ensuring the optimal dispatch of available solar, wind, and run-of-river resources.
-
Fuel Conservation: Managing critical fuel inventories for thermal plants to mitigate the impact of global supply chain instability.
-
System Reliability: Providing a rigid framework for the Independent Electricity Market Operator of the Philippines (IEMOP) and the National Grid Corporation of the Philippines (NGCP) to maintain grid stability.
To prevent financial collapse for generators while shielding consumers from price surges, the ERC is implementing a Modified Administered Pricing (AP) Mechanism.
Unlike standard administered pricing—which typically relies on historical averages from previous months—the ERC determined that January and February price points are no longer reflective of the current global crisis. The new framework, targeted for finalization by April 1, 2026, introduces technology-specific compensation:
-
Coal Plants: Compensated at a fixed rate.
-
Natural Gas: Paid based on specific contracted prices.
-
Renewables (Hydro/Geothermal): Provided administered pricing with preferential dispatch status.
-
Oil-based Plants: Compensated based on administered prices when activated for system reliability.
ERC Chairperson and CEO Atty. Francis Saturnino C. Juan emphasized the necessity of these interim measures:
“In times of global energy disruption, our priority is clear: to protect Filipino consumers while ensuring that our power supply remains stable and reliable. The temporary suspension of the WESM and the implementation of a modified administered pricing mechanism are necessary measures to cushion the impact of volatile fuel prices and safeguard the integrity of our power system.”
The suspension will remain in effect until the ERC and DOE determine that global and local conditions have stabilized enough for a safe return to normal market operations. The ERC assures the public that these measures are temporary safeguards designed to maintain the economic and operational viability of the nation’s electricity infrastructure during this period of global uncertainty.
