Following the issuance of Executive Order No. 110, the Department of Energy (DOE) has implemented decisive measures to stabilize the national power system and mitigate the impact of soaring electricity costs triggered by the escalating Middle East conflict.
As global fuel volatility threatens local energy security, the DOE has directed the implementation of special operating guidelines for system dispatch. These measures prioritize the full and efficient utilization of renewable energy, indigenous sources, and coal-fired power plants to lower costs and ensure a steady supply.
Data from the Independent Electricity Market Operator of the Philippines (IEMOP) highlights the urgency of this intervention. Initial simulations suggest that without action, Wholesale Electricity Spot Market (WESM) prices could spike to over ₱9/kWh—a significant jump from the pre-conflict average of ₱5/kWh.
By maximizing the dispatch of domestic and coal-fired resources, the DOE aims to:
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Cushion Price Increases: Projections show a potential reduction of up to ₱2/kWh in WESM prices compared to unmanaged market trends.
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Preserve Fuel Inventories: Implementing urgent measures to stretch existing fuel supplies.
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Strengthen System Resilience: Improving coordination on fuel availability and emergency dispatch protocols. “Our priority is to ensure that electricity remains stable and reliable despite external global shocks,” the Department stated. “By leveraging our indigenous resources and optimizing our current fleet, we are building a buffer for the Filipino consumer against the volatility of the international fuel market.”
The DOE is working in close coordination with the Energy Regulatory Commission (ERC) and industry stakeholders to maintain orderly market conditions. These special guidelines are designed to be responsive to system security requirements while prioritizing the welfare of consumers and the integrity of the national grid.
Moving forward, the DOE will continue to monitor global developments and adjust dispatch strategies to safeguard the country’s energy future.
