ERC resumes WESM operations nationwide

The Energy Regulatory Commission has ordered the resumption of Wholesale Electricity Spot Market operations across the Luzon, Visayas, and Mindanao grids effective May 1, 2026, at interval 0005H, or 12:05 a.m.

The order restores market-based electricity trading after more than a month of suspended WESM operations that began March 26, 2026.

The WESM is the country’s electricity trading market where power generators sell electricity and distribution utilities, electric cooperatives, and suppliers buy power when needed.

Spot market prices change depending on the price offers of generators, available transmission capacities, and supply and demand conditions.

The ERC said the March 26 suspension was implemented because of escalating global fuel prices and supply concerns stemming from conflict in the Middle East.

During the suspension, the prioritization of generating units within the WESM was implemented to conserve fuel and mitigate price impacts.

The prioritization followed the Special Operating Guidelines issued by the Department of Energy for system dispatch during the suspension period.

A Modified Administered Price mechanism was also put in place to manage market settlement outcomes while normal spot trading was suspended.

The ERC said lifting the suspension is intended to enhance transparency, prevent artificial settlement distortions, and facilitate efficient price discovery.

The commission cited Section 43(o) of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, which mandates the ERC to monitor activities in the generation and supply sectors of the electric power industry.

The provision aims to promote free market competition and ensure that the allocation or pass-through of bulk purchase costs by distributors is transparent and non-discriminatory.

The ERC said its decision was based on its assessment of the market suspension and the implementation of the Modified Administered Price in the WESM.

“After a thorough review, the Commission has concluded that resuming normal WESM operations is the most suitable course of action at this juncture. This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

Juan said emergency pricing measures were effective during the disruption but could create settlement issues if kept in place too long.

“We observed that although the temporary pricing mechanism was effective in addressing the emergency, prolonging its use could lead to unintended charges in market settlements,” Juan added.

The ERC assured the public that it will continue to monitor electricity prices in the WESM, fuel supply developments, and power system reliability.

The commission said continued monitoring is meant to help ensure stable and reasonable rates for consumers.

The ERC also said it will not hesitate to re-declare a market suspension if circumstances warrant the reimposition of administered prices.