The Energy Regulatory Commission (ERC) has ordered the resumption of the operations of the Wholesale Electricity Spot Market (WESM) in the Luzon, Visayas, and Mindanao grids effective May 1, 2026.
The WESM is the electricity trading market where power generators sell electricity and distribution utilities, electric cooperatives, and suppliers buy power when needed.
Prices in the WESM change depending on the price offers of generators, available transmission capacities, and supply and demand conditions.
On March 26, 2026, WESM operations were temporarily suspended due to escalating global fuel prices and supply concerns stemming from conflict in the Middle East. During this time, the prioritization of generating units within the WESM was implemented to conserve fuel and mitigate price impacts, following the Special Operating Guidelines (SOG) issued by the Department of Energy (DOE) for System Dispatch during the suspension.
According to Section 43 (o) of Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA), the ERC is responsible for monitoring activities in the generation and supply of the electric power industry.
This is aimed at promoting free market competition and ensuring that the allocation or pass-through of bulk purchase costs by distributors is transparent and non-discriminatory.
“This regulatory action of lifting the market suspension will enhance transparency, prevent artificial settlement distortions, and facilitate efficient price discovery.”
The ERC believes that, given the current circumstances and its assessment of the market suspension and Modified Administered Price (MAP) implementation in the WESM, this regulatory action of lifting the market suspension will enhance transparency, prevent artificial settlement distortions, and facilitate efficient price discovery.
“After a thorough review, the Commission has concluded that resuming normal WESM operations is the most suitable course of action at this juncture. This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.
“This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards.”
“We observed that although the temporary pricing mechanism was effective in addressing the emergency, prolonging its use could lead to unintended charges in market settlements,” Juan added.
The Commission assured the public that it will continue to monitor electricity prices in the WESM, fuel supply developments, and power system reliability to help ensure stable and reasonable rates for all consumers.
It will not hesitate to re-declare a market suspension should the circumstances warrant the reimposition of the administered prices.
