The Energy Regulatory Commission (ERC) has ordered the temporary suspension of the Wholesale Electricity Spot Market (WESM) across the Luzon, Visayas, and Mindanao grids, effective 26 March 2026, in response to escalating energy supply risks and price volatility linked to ongoing geopolitical tensions in the Middle East.
The directive follows the issuance of Executive Order No. 110 Series of 2026, which declared a state of national energy emergency due to global fuel supply disruptions and surging oil prices. The ERC’s move also aligns with a recommendation from the Department of Energy (DOE), communicated on 25 March 2026, urging immediate suspension of WESM operations nationwide.
According to the ERC, the suspension will take effect at interval 0005H on 26 March 2026. During this period, the power system will operate under Special Operating Guidelines issued by the DOE, prioritizing the optimal dispatch of renewable energy resources, conservation of critical fuel inventories, and maintaining system stability.
Key market participants, including the Independent Electricity Market Operator of the Philippines (IEMOP) and the National Grid Corporation of the Philippines – System Operator (NGCP-SO), have been directed to comply with the interim operational framework.
In parallel, the ERC will introduce a Modified Administered Pricing (AP) Mechanism, currently under stakeholder consultation and expected to be finalized by 01 April 2026. The proposed pricing structure adopts a technology-specific approach, with coal-fired plants receiving fixed rates, natural gas facilities compensated based on contracted prices, and renewable energy sources such as hydro and geothermal prioritized under administered pricing. Oil-based plants will be paid based on administered prices when dispatched or contracted.
The regulator noted that reliance on historical market prices from January and February would not accurately reflect current market dynamics shaped by fuel supply constraints and geopolitical uncertainties. The revised pricing mechanism is aimed at balancing consumer protection against price spikes while ensuring the financial viability of power generators.
ERC Chairperson and CEO Francis Saturnino C. Juan emphasized the need for decisive intervention, stating that the measures are intended to stabilize electricity supply and shield consumers from the impact of volatile global energy markets.
The suspension of WESM will remain in place until the ERC, in coordination with the DOE, determines that conditions are conducive for the safe resumption of normal market operations.
The ERC reiterated that these measures are temporary and necessary to mitigate the effects of global energy disruptions while safeguarding the reliability of the Philippine power system.
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