WESM Posts Negative Power Prices Across All Grids Again

For the third time since December 2024, the Wholesale Electricity Spot Market (WESM) has registered negative average electricity prices across the Luzon, Visayas and Mindanao grids, according to a market analysis released by the Energy Regulatory Commission (ERC).

Incidences of Negative WESM Prices from December 2024-April 2025

The ERC reported that negative prices occurred on Dec. 25, 2024, Jan. 1, 2025, and most recently on April 18, 2025, driven by a combination of low electricity demand during holidays and high supply availability.

Negative pricing, though uncommon, reflects actual market conditions and serves to incentivize flexible power generation and demand-side participation, the ERC said.

“These price movements are part of the market’s mechanism to reflect real-time supply and demand,” said ERC Chairperson and CEO Monalisa C. Dimalanta in a statement.

“We are consistently keeping a close watch on how the electricity market is moving to make sure price signals remain reflective of actual system conditions while protecting the welfare of consumers,” she added.

While consumers may benefit from the resulting lower generation charges, the actual impact on power bills will vary based on each distribution utility’s (DU) supply mix and spot market exposure.

Utilities with greater dependence on WESM-sourced electricity could pass on greater savings to consumers, while others with long-term contracts may see smaller effects.

Despite the negative pricing in the energy market, the Reserve Market—where ancillary services are traded—continues to post high prices, reflecting sustained system stability and security needs.

From April 14 to 20, 2025, reserve market prices remained elevated, underscoring grid operators’ continued procurement of reserves to meet growing system requirements:

Meanwhile, concerns are rising over the implications for the Feed-in Tariff Allowance (FIT-All), a fund used to subsidize renewable energy developers under fixed-rate contracts.

Prolonged periods of low market prices could impair the FIT-All fund’s ability to fulfill its financial obligations, possibly leading to deferred payments or upward rate adjustments in the future.

Coal remains the dominant energy source in the Philippines as of April 2025, accounting for 63.23 percent of the country’s total electricity generation, followed by natural gas at 14.34 percent, according to the ERC.

Dimalanta reaffirmed the commission’s commitment to ensuring a competitive and transparent energy market, while maintaining reliable and affordable electricity for Filipinos.

“Through our regular analysis of market trends, the Commission stays committed to its mission of promoting a competitive, transparent, and efficient energy sector that works toward reliable and affordable electricity for all Filipinos,” she said.