The Energy Regulatory Commission (ERC) issued Resolution No. 33, Series of 2026, introducing a one-time settlement adjustment to address unusually high line rental charges incurred in the Wholesale Electricity Spot Market (WESM) from March 26 to April 30, 2026, to ensure fairer electricity market settlements and protect consumers from unwarranted costs.
The Resolution addresses charges arising from the implementation of the Modified Administered Price (ModAP) during the nationwide electricity market suspension under Executive Order No. 110, Series of 2026. These charges resulted from differences in electricity prices at generation and consumption points.
Under the new methodology, the ERC seeks to eliminate the affected line rental charges through recalculated market settlements, with any resulting adjustments or net credits required to be passed on directly to consumers by distribution utilities (DUs).
This corrective measure ensures that electricity market settlements are fair, transparent, and properly accounted for, with any resulting credits or adjustments reaching consumers.”
“Electricity consumers should not be burdened by excessive charges arising from extraordinary market conditions. This corrective measure ensures that electricity market settlements are fair, transparent, and properly accounted for, with any resulting credits or adjustments reaching consumers,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.
The ERC has directed the Independent Electricity Market Operator of the Philippines (IEMOP) to complete the recalculations and submit the results for Commission approval within 45 calendar days from the Resolution’s effectivity. Once approved, IEMOP must issue separate, itemized settlement adjustment statements to affected market participants within three calendar days.
For electricity consumers, the measure provides an opportunity for appropriate billing adjustments or credits, depending on the final approved computations. For DUs, generation companies, and other market participants, it establishes a uniform and transparent mechanism for correcting settlements during the affected period.
“Our priority is to ensure that corrective adjustments do not stop at the wholesale market level but are properly reflected in the charges borne by end-users.”
“Our priority is to ensure that corrective adjustments do not stop at the wholesale market level but are properly reflected in the charges borne by end-users. We remain committed to protecting consumer welfare while maintaining fairness and accountability across the electricity industry,” Juan emphasized.
The ERC clarified that the measure applies exclusively to the 26 March 26-April 30, 2026 market suspension period and does not permanently change existing WESM pricing and settlement rules.
The Resolution takes effect immediately following publication in a newspaper of general circulation or the Official Gazette.
