The Energy Regulatory Commission is set to revisit the Wholesale Electricity Spot Market (WESM) secondary price cap after repeated grid alerts triggered sustained high electricity prices that repeatedly hit the ceiling.
ERC Chair Francis Saturnino Juan said the cap, which activates once prices exceed P12.41 per kWh, is intended as a safeguard rather than a long-term pricing destination amid tight supply conditions caused by plant outages and high demand.
He noted that the current mechanism may be affecting investment signals for additional peaking capacity, prompting a review of whether adjustments or removal of the cap are needed.
The move comes as the Department of Energy pushes for expanded domestic and renewable energy sources to reduce reliance on imported fuel and improve supply stability.
Energy officials also highlighted upcoming green energy auctions for solar, offshore wind, and biomass projects with battery storage to strengthen the country’s long-term power supply.
Source: PhilNews24 | May 27, 2026
