Power sector braces for price surge under emergency orders
The Department of Energy (DOE) has directed power sector stakeholders to immediately implement fuel conservation and prioritization measures following President Ferdinand R. Marcos Jr.’s declaration of a state of national energy emergency under Executive Order No. 110. The directive is intended to protect the stability of the country’s electricity supply while cushioning electricity price impact

By Staff Writer
The Department of Energy (DOE) has directed power sector stakeholders to immediately implement fuel conservation and prioritization measures following President Ferdinand R. Marcos Jr.’s declaration of a state of national energy emergency under Executive Order No. 110.
The directive is intended to protect the stability of the country’s electricity supply while cushioning electricity price impact amid rising global fuel prices.
Signed by Energy Secretary Sharon S. Garin on March 25, 2026, the advisory covers generation companies, the National Grid Corporation of the Philippines (NGCP), the Independent Electricity Market Operator of the Philippines (IEMOP), distribution utilities, electric cooperatives, ancillary service providers, and other Wholesale Electricity Spot Market (WESM) trading participants.
It sets out urgent measures to conserve fuel inventories, manage dispatch more efficiently, and reduce the exposure of the power sector to external supply shocks.
As fuel prices continue to rise due to the Middle East conflict, initial simulations by the IEMOP estimate that average prices of getting supply from the WESM could exceed PHP 9 per kilowatt-hour from the pre-Middle East conflict average WESM prices of PHP 5 per kilowatt-hour or less.
Similarly, power supply from bilateral contracts is likely to increase as fuel prices escalate.
The DOE called for the adoption of special operating guidelines for system dispatch to support the full utilization, where feasible and subject to system security requirements, of renewable energy resources, indigenous energy sources, and coal.
Specifically, the full dispatch of coal-fired power plants is projected to cushion the increase in WESM prices by up to PHP 2 per kilowatt-hour.
“As a net importer of oil, coal, and liquefied natural gas (LNG), we are acting with heightened discipline to preserve power system reliability in the face of escalating global fuel market volatility,” Garin said. “This is a decisive intervention to protect the grid, manage fuel use responsibly, and ensure that essential electricity services remain uninterrupted.”
The advisory also directed generation companies to closely monitor fuel inventories, comply with their required 15-day fuel inventory, and immediately report any actual or potential fuel supply risks to the DOE for appropriate assessment and possible intervention.
Generation companies were further directed to explore feasible fuel alternatives to support cost mitigation and supply adequacy, including options for higher biodiesel blends for oil-based plants and coal blending or co-firing with locally available feedstock, typically biomass, for coal-fired facilities, subject to technical, operational, and environmental requirements.
The department said these measures are intended to moderate the impact of sustained fuel price increases in the international market, which could otherwise place significant upward pressure on WESM prices.
For off-grid areas, the DOE called on utilities to use available generation efficiently, continue securing fuel supply, and implement demand-side management measures, recognizing the greater vulnerability of isolated systems to international fuel market disruptions.
The DOE emphasized that these actions form part of the government’s broader emergency response under EO 110 to safeguard the adequacy, stability, and affordability of energy supply during a period of heightened global uncertainty.
The department said it will continue to monitor compliance closely, in coordination with the Energy Regulatory Commission, IEMOP, NGCP, and other concerned entities, and will take further action as necessary to preserve system reliability, maintain orderly market conditions, and protect consumers.
Meanwhile, the government, through the DOE, has received the first shipment of diesel imported under its Emergency Energy Security Program, delivering approximately 22,578,000 liters or 142,000 barrels of additional fuel to strengthen the country’s oil supply.
The initiative is being carried out in coordination with the Philippine National Oil Company and PNOC Exploration Corporation, with the program aiming to secure up to two million barrels of additional oil supply for the country.
“Patuloy ang pagtutok ng DOE upang madagdagan ang suplay ng langis sa bansa. Ang mabilis na pagdating ng diesel na ito ay bahagi ng mga hakbang para hindi maantala ang biyahe, hanapbuhay, at pang-araw-araw na buhay ng bawat Pilipino,” Garin said.
In a separate development, the DOE welcomed the successful drilling, completion, and testing of the Camago-3 well, a historic milestone that reinforces the country’s energy security.
The Camago-3 well, located in the Malampaya-Camago structure within Service Contract 38, was successfully tested at production rates of up to 60 million standard cubic feet of gas per day, marking a significant addition to the country’s indigenous gas supply.
“This is a historic milestone for Filipino-led engineering and the country’s energy security,” Garin said. “Amid the Middle East conflict, this gas discovery strengthens our domestic gas program: keeping supply dependable, reducing exposure to global fuel markets, and helping ensure that our energy transition remains affordable and secure for the Filipino people.”
Building on the breakthrough discovery at the Malampaya East-1 well earlier this year, Camago-3 represents the second successful milestone under the USD 893-million Malampaya Phase 4 development campaign. It also reflects a significantly larger resource, with recoverable gas volumes estimated to be around 2.5 times greater than those of the Malampaya East-1 well.
By expanding domestic natural gas production, Malampaya helps shield Filipino consumers from the price volatility of imported fuels. At a fuel cost of PHP 4.80 per kilowatt-hour, indigenous Malampaya gas provides a significantly more affordable energy source compared with roughly PHP 10.30 per kilowatt-hour for imported LNG.
To date, the government has awarded nine major service contracts, covering the continued production of the Galoc Field as well as high-potential areas in the West Philippine Sea and the Sulu Sea, drawing more than USD 200 million in pledged investments.
The DOE has also recently released the notice of bidding for the Philippine Gradiometry and Seismic Survey Project, a nationwide geological initiative that will generate critical data for future bidding rounds and help strengthen the long-term pipeline of upstream exploration and development.
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