ERC to suspend operation of Wholesale Electricity Spot Market

ERC to suspend operation of Wholesale Electricity Spot Market
Rommel Azucena photo/File

THE Energy Regulatory Commission (ERC) will suspend the operation of the Wholesale Electricity Spot Market (WESM) on the occasion that a red alert was declared by the National Grid Corporation of the Philippines (NGCP), said President Ferdinand Marcos Jr. on Wednesday, May 1, 2024.

“Dahil sa matinding init, tumataas ang konsumo ng kuryente na nakakadagdag sa pag-akyat ng presyo,” Marcos said in his speech during the commemoration of the 122nd Labor Day.

(Due to extreme heat, electricity consumption increases, adding to the price hike.)

“Ito ay naglalayon na pigilan ang pagtaas ng presyo ng kuryente sa gitna ng kalamidad na dulot ng El Niño,” he added.

(This is aimed at preventing the increase in electricity prices amid the disaster caused by El Niño.)

The WESM, which was created under Republic Act 9136, or the Electric Power Industry Reform Act (Epira) of 2001, is a venue for trading electricity as a commodity.

Under WESM, power generators sell their excess capacities not covered by contracts and where the customers buy additional capacities on top of their contracts.

Power outages are being experienced intermittently in various parts of the country as power systems overload due to the increase in demand brought about by the extreme heat and dry spell.

Marcos earlier assured the public that the government will carry out plans and strategies to tame power prices amid the current high demand for electricity. (TPM/SunStar Philippines)

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