ERC moves to curb power spot market abuse

The Energy Regulatory Commission (ERC) is intensifying measures to protect the power spot market from potential abuse as concerns rise over the increasing influence of major industry players. ERC chairman Francis Saturnino Juan emphasized the need for heightened supervision in markets dominated by a few participants to prevent anti-competitive practices.

Speaking at the Electricity Market Exchanges 2026, Juan stressed the importance of maintaining competition and preventing prices from being inflated, which could harm consumers. He also noted the sector's transformation over the last two decades, with growing roles for renewable energy and battery storage. Juan highlighted the importance of managing these assets effectively as the Philippines aims to lessen its dependence on imported fuels and enhance grid resilience.

Meanwhile, the Wholesale Electricity Spot Market (WESM) prices have stayed high due to limited power supply, increased demand, and an energy emergency caused by Middle East tensions. Although prices slightly dropped last month, they remained above P10 per kilowatt-hour in the Visayas and Mindanao regions, raising generation costs for utilities heavily involved in the WESM.

Although some respite was observed last month, WESM spot prices in certain areas remained elevated, affecting utilities with significant exposure to the market. Amid the global oil crisis, the ERC temporarily halted WESM trading for over a month to prevent a significant rise in electricity prices and prioritize cheaper power sources like renewables and coal.

Energy Secretary Sharon Garin attributed this to the collective efforts of the energy sector, which avoided a steep price increase for consumers.