Electricity rates were on track to surge toward ₱9 per kilowatt-hour as fuel disruptions tightened supply. The Department of Energy stepped in to prevent that expected spike by implementing emergency pricing.
Authorities suspended the Wholesale Electricity Spot Market (WESM) on March 26 to limit exposure to volatile market rates. Regulators replaced market-driven pricing with administered rates to stabilize electricity costs nationwide.
The Energy Regulatory Commission (ERC) ordered the suspension under a declared national energy emergency. This move halted spot trading, where electricity prices shift based on real-time supply and demand.
In its place, a modified administrative pricing system sets rates based on fuel type and operating conditions. Renewable energy sources receive priority dispatch to manage overall costs.
Coal-fired plants operate with a price cap of ₱6,000 per megawatt-hour to provide stable pricing. Meanwhile, natural gas and oil plants run below scheduled levels to conserve limited and more expensive fuel supplies.
The DOE adjusted plant dispatch to reflect current fuel constraints and cost differences. Coal units generated more electricity as a cheaper option, while LNG and oil usage remained limited due to higher global prices.
“We were expecting the mga nine pesos of increase, but hindi ganun kalaki yung magagawa kasi nag-intervene yung ERC tsaka yung DOE,” Sharon S. Garin, on early results showing reduced price impact after intervention.
Early data placed electricity prices at around ₱5.41 per kWh in Luzon and Visayas. Mindanao showed similar levels at ₱5.48 per kWh, keeping rates within a stable national range.
