The Energy Regulatory Commission (ERC) has issued Resolution No. 14, Series of 2026, providing clarificatory guidelines on the implementation of the Modified Administered Price (MAP) in the Wholesale Electricity Spot Market (WESM), in line with the government’s response to the State of National Energy Emergency under Executive Order No. 110.
The Resolution addresses operational and settlement concerns raised by industry stakeholders during the recent market suspension and ensures that consumer protection remains paramount in the implementation of the MAP.
At the core of the Resolution is the adoption of a one-time Bilateral Contract Quantity (BCQ) redeclaration mechanism for coal-fired power plants that were available but constrained or curtailed due to System Operator instructions.
This allows affected generators and their counterparties to realign contracted energy volumes with actual dispatch conditions during the suspension period. However, any exposure of the load arising from the redeclaration shall be borne by the coal-fired power plant in favor of its counterparty.
The ERC also maintained the existing settlement treatment for the Kalayaan Pump Storage Power Plant (KPSPP), with transactions to be settled at customer administered price (AP).
At the same time, the Commission authorized KPSPP to claim additional compensation for pumping operations undertaken upon instruction of the National Grid Corporation of the Philippines (NGCP), recognizing its role in maintaining grid stability, ensuring that system support services are fairly compensated.
ERC Chairperson and CEO Atty. Francis Saturnino Juan emphasized that the issuance strikes a careful balance between market stability and consumer protection.
“This Resolution ensures that extraordinary market conditions are managed in a fair, transparent, and orderly manner.”
“This Resolution ensures that extraordinary market conditions are managed in a fair, transparent, and orderly manner,” Juan said.
“By clarifying settlement rules and addressing unintended cost exposures, we are protecting consumers from unnecessary price volatility while preserving the integrity of the electricity market,” the ERC chief explained.
“By clarifying settlement rules and addressing unintended cost exposures, we are protecting consumers from unnecessary price volatility.”
The guidelines provide regulatory clarity on how energy transactions during market disruptions will be treated. This improves billing accuracy and reduces uncertainty in settlements, ultimately supporting more stable electricity pricing for end-users.
The measure also helps mitigate sharp and unpredictable increases in electricity rates by preventing undue cost exposures of customers in the market. Ensuring that costs are properly allocated reduces the likelihood that inefficiencies or distortions will be passed on to electricity bills.
For generation companies, particularly coal-fired plants, the BCQ redeclaration mechanism offers a practical and fair solution to situations where plants were unable to dispatch due to system constraints. It ensures that financial exposures are managed through contractual arrangements rather than through distorted market outcomes.
Overall, the issuance of Resolution No. 14 is part of the ERC’s broader strategy to safeguard consumers, stabilize electricity prices, and ensure the continued reliability of the power system amid global energy uncertainties.
A copy of ERC Resolution No. 14, Series of 2026 may be accessed here:
https://www.erc.gov.ph/Files/Render/issuance/48384.
