ERC’s first 100 days signal bold shift in energy reform

MANILA — The Philippine Electricity Market Corporation (PEMC) has recognized the Energy Regulatory Commission (ERC) and its new chairperson, Atty. Francis Saturnino Juan, for a slate of reforms in the Commission’s first 100 days that are already shaping the country’s energy sector toward more responsive, modern governance.

PEMC cited key policy developments that include the long-delayed resolution of the Performance-Based Regulation (PBR) rate reset, stronger regulatory backing for renewable energy, streamlined net metering procedures, and updates to critical regulatory frameworks.

“These reforms introduced by the ‘New ERC’ reflect a notable shift toward more responsive and modernized regulation,” PEMC stated. “This period of active policy development has generated a sense of renewed momentum across the sector”.

Among the highlighted reforms is the expansion of Retail Competition and Open Access (RCOA), designed to broaden consumer options and inject more competitiveness into the electricity market. The ERC has also introduced measures aimed at reinforcing the long-term viability of renewable energy, bolstering investor confidence and supporting a more resilient power system.

PEMC affirmed its alignment with the ERC’s direction, emphasizing its role as a partner in ensuring that the electricity market supports the delivery of affordable and sustainable power.

“For PEMC, this strengthened collaboration reinforces a shared commitment to advancing the governance of the electricity market,” the corporation said. “We remain aligned with the ERC’s policy direction and are focused on fulfilling our mandate as an effective partner”.

PEMC added that it is committed to translating these regulatory initiatives into “practical and measurable market outcomes” and expressed readiness to support the sector’s next development phase.

“Congratulations to Chairperson Juan and the ERC team on these notable early achievements,” PEMC concluded.

Established in November 2003, PEMC is a non-stock, non-profit organization formed under the Department of Energy’s initiative. It served as the governing body and autonomous group market operator of the Philippine Wholesale Electricity Spot Market (WESM) for over a decade.

WESM operates as a centralized trading platform for electricity, with prices set based on real-time supply and demand. It was created under Republic Act 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001, and began commercial operations in Luzon in 2006, the Visayas in 2010, and Mindanao in 2023.

While the market operator function was officially transferred to the Independent Electricity Market Operator of the Philippines (IEMOP) in September 2018, PEMC continues to oversee WESM governance through its board and various market governance committees.