THE Energy Regulatory Commission (ERC) said it does not expect to lift the suspension of the electricity spot market trading anytime soon, though it remains hopefulTHE Energy Regulatory Commission (ERC) said it does not expect to lift the suspension of the electricity spot market trading anytime soon, though it remains hopeful

WESM suspension to stay as fuel prices remain elevated

2026/04/28 20:46
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THE Energy Regulatory Commission (ERC) said it does not expect to lift the suspension of the electricity spot market trading anytime soon, though it remains hopeful the ongoing energy crisis will ease sufficiently to reconsider the suspension.

“If fuel prices improve, or there are no challenges in the supply, then we will study the lifting of the suspension,” ERC Chairman and Chief Executive Officer Francis Saturnino C. Juan told reporters on the sidelines of the Institute for Climate and Sustainable Cities briefing on Tuesday.

In March, the regulator suspended indefinitely the operations of the Wholesale Electricity Spot Market (WESM) across all grids after prices hit P9 per kilowatt-hour as the Iran crisis escalated.

WESM allows energy companies to buy power if their long-term contracted power deals prove inadequate for their needs.

The Department of Energy (DoE) said fuel prices are set to decline on Tuesday for a third consecutive week. Diesel is expected to drop by at least P12.94 per liter, kerosene by P15.71 per liter, and gasoline by P0.53 per liter.

Despite the rollback, pump prices remain higher than pre-war levels, as global fuel costs have surged since the US and Israel attacked Iran in late February.

The market suspension was recommended by the DoE following the declaration of a national state of energy emergency, he said, adding that the suspension was designed to keep WESM prices in check.

“Lifting is one of the ERC’s discussions and deliberations internally and we need to consult the DoE as well. Because in the one month of market suspension, we saw the need to resolve or refine some pricing mechanisms,” he said.

During the suspension, the ERC introduced a new pricing mechanism that sets rates based on the type of power plant.

Under the modified administered pricing scheme, prices  now reflect prevailing fuel costs, replacing the use of historical market prices which the ERC said do not capture current conditions shaped by geopolitical developments and fuel supply constraints. — Ashley Erika O. Jose

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