The Energy Regulatory Commission (ERC) has implemented a modified administered pricing mechanism for the Wholesale Electricity Spot Market (WESM), effective 26 March 2026, aimed at stabilising electricity rates and optimising the allocation of generation resources. The pricing adjustment coincided with the nationwide suspension of WESM operations at dispatch interval 00:05H on the same day.
The move follows the declaration of a state of national energy emergency by President Ferdinand Marcos Jr., amid rising global fuel prices and supply uncertainties linked to geopolitical tensions in the Middle East. The suspension was undertaken upon the recommendation of the Department of Energy (DOE).
Under Resolution No. 10, Series of 2026, the ERC has set a fixed administered price of PhP6,000 per megawatt-hour (MWh) for coal-fired power plants to ensure stable generation and prioritise dispatch. Other energy sources will continue to follow the existing pricing methodology.
Renewable energy sources—including solar, wind, run-of-river hydro, biomass, geothermal, and impounding hydro—will be compensated based on administered prices derived from market rates during the four weeks preceding the suspension, with adjustments to ensure reasonable cost recovery. However, these generators will not be eligible for additional compensation, as the ERC considers the administered pricing sufficient.
In contrast, oil-based, natural gas, battery energy storage, and pumped storage hydro facilities will be settled under the existing administered pricing scheme, with negative values set to zero. These generators may apply for additional compensation to recover fuel and operational costs not fully covered by the administered price.
To mitigate the impact on consumers, the ERC stated that any approved cost adjustments exceeding PhP0.005 per kilowatt-hour (kWh) will be recovered gradually over three equal instalments across successive billing periods. The regulator has also retained the current administered pricing mechanism for the reserve market, citing its responsiveness to actual system conditions.
ERC Chairperson and CEO, Atty. Francis Saturnino C. Juan, said the commission will continue to closely monitor market conditions and implement timely measures to protect consumers while ensuring power supply stability and adequacy.
The modified pricing mechanism will remain in effect until the suspension of WESM is lifted.
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