ERC moves to curb power spot market abuse

MANILA, Philippines — The Energy Regulatory Commission (ERC) is stepping up efforts to safeguard the power spot market against potential abuse amid concerns over the growing influence of key industry players.

“In a market where there is a high concentration of market power in the hands of a few participants, there is a need for closer monitoring to ensure that those with market power will not abuse (it) or resort to anti-competitive behavior,” ERC chairman and CEO Francis Saturnino Juan said.

He made the remarks during the recent Electricity Market Exchanges 2026, hosted by the Philippine Electricity Market Corp. (PEMC) to mark the Wholesale Electricity Spot Market (WESM)’s 20th anniversary.

“We should be more vigilant in our monitoring efforts, so we ensure that there remains to be competition happening and that prices are not unduly inflated to the detriment of our electricity consumers,” Juan said.

The ERC chief also highlighted how the power sector has evolved over the past two decades, with renewable energy and battery storage now playing a bigger role in the grid.

Managing these assets effectively, he stressed, would be crucial as the Philippines works to reduce its reliance on imported fuels and build’s a more resilient power system.

This comes as WESM prices have remained elevated in recent months due to tight power supply, stronger demand and the ongoing energy emergency spurred by Middle East tensions.

Although there was some easing last month, spot prices in the Visayas and Mindanao remained above P10 per kilowatt-hour, raising power generation costs for utilities with greater WESM exposure.

WESM serves as a centralized platform for electricity trading where distribution utilities and electric cooperatives can source their energy requirements.

Spot prices typically rise when power demand spikes or when supply tightens.

In the face of the global oil crisis, the ERC previously suspended WESM trading for more than a month amid the looming threat of a sharp surge in electricity prices.

Regulators also ordered the priority dispatch of cheaper power sources, including renewables and coal, to help shield consumers from sudden price spikes.

“With the whole energy family effort, we avoided at least a P7 jump on the price of electricity,” Energy Secretary Sharon Garin said at the same PEMC event. “These efforts, collaboration, exchange of ideas, and just a common concern for our consumers avoided this big jump in electricity prices.”