Manila – In a move to counteract surging electricity prices, President Ferdinand R. Marcos Jr. announced on Wednesday that the Energy Regulatory Commission (ERC) will temporarily suspend the operation of the Wholesale Electricity Spot Market (WESM) during red alert statuses on the country's power grids. The decision aims to stabilize rising costs amid increased demand triggered by the current heatwave.
According to Philippines News Agency, Marcos outlined the government’s response to recent yellow and red alert notices in the Luzon and Visayas grids. These alerts have been frequent over the past weeks due to a significant spike in electricity demand, attributed to unusually high temperatures brought on by the El Niño phenomenon. The President noted that the ERC took action to suspend WESM operations to prevent further price increases during these critical periods.
The ERC, which manages the regulatory framework, confirmed that during the suspension period, administered prices would be imposed to govern transactions within the spot market. This market functions as a centralized platform where electricity is traded between buyers and sellers, with prices fluctuating based on demand and supply dynamics. The administered price mechanism is designed to prevent price spikes that can occur when market supply becomes constrained during emergencies.
The temporary suspension aligns with provisions in the Electric Power Industry Reform Act of 2001, which allows for such measures during national emergencies or significant natural calamities.