DOE backs reg’l power price cap

CEBU, Philippines — The Department of Energy (DOE) welcomed a new regional electricity price cap that could cut Wholesale Electricity Spot Market (WESM) prices in the Visayas and Mindanao by more than half during periods of tight supply.

The Energy Regulatory Commission (ERC) began applying the Secondary Price Cap (SPC) separately to the two grids starting with the August 2026 billing period, preventing lower electricity prices in Luzon from masking supply tightness in the regions.

Based on an ERC simulation, the regional SPC could have reduced the average August WESM price in the Visayas from ?18.59 per kilowatt-hour (kWh) to ?8.47/kWh, or by 54 percent. In Mindanao, the average could have fallen from ?19.56/kWh to ?8.69/kWh, or by 56 percent.

“Consumers in the Visayas and Mindanao should not have to bear extraordinary electricity prices when supply becomes tight. The regional price cap gives them immediate protection,” Energy Secretary Sharon Garin said in a statement.

Garin said the DOE was also working to strengthen power supply by bringing unavailable power plants back online, building up battery reserves and addressing recurring and prolonged outages.

The DOE clarified that the impact on individual electricity bills would vary depending on each distribution utility’s exposure to the spot market and overall power supply mix.

The ERC directed distribution utilities to promptly and accurately reflect the recalculated SPC-based charges in consumers’ electricity bills.

The Independent Electricity Market Operator of the Philippines (IEMOP) was also ordered to recalculate the August 2026 market settlements and issue revised Final Statement Bills on or before Sept. 20, 2026.

The regional computation will also apply to succeeding billing periods.

The DOE also supported the ERC’s directive for the Philippine Electricity Market Corporation, through its Market Surveillance Committee, to examine the bidding, offer and dispatch behavior of generators during periods of unusually high electricity prices.

The DOE said it would continue coordinating with the ERC and other power-sector agencies and stakeholders to stabilize electricity supply, monitor market conduct and ensure that recalculated charges are properly reflected in consumer bills.-- FPL (CEBU NEWS)