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Advocates Philippines
WESM Temporarily Paused Amid Global Oil Turmoil
Photo credit: IEMOP Via ERC
The Energy Regulatory Commission (ERC) has temporarily halted the Wholesale Electricity Spot Market (WESM) across Luzon, Visayas, and Mindanao.
The move comes as global tensions in the Middle East continue to drive up oil prices, with regulators aiming to keep electricity supply stable while preventing sudden spikes in consumers’ bills.
This action follows Malacañang’s declaration of a national energy emergency under Executive Order No. 110, citing disruptions in global oil supply. The ERC acted after receiving a recommendation from the Department of Energy, starting the suspension early Thursday, just after midnight.
During the WESM pause, the power system will operate under Special Operating Guidelines from the DOE, which focus on maximizing renewable energy, conserving critical fuel, and ensuring smooth dispatch across the grids. Operators like the Independent Electricity Market Operator of the Philippines (IEMOP) and National Grid Corporation of the Philippines (NGCP) are required to follow these rules.
Meanwhile, the ERC will implement a Modified Administered Pricing mechanism to better reflect current fuel costs. Coal plants will receive fixed rates, natural gas plants will be paid based on contracts, renewables like hydro and geothermal will get priority dispatch, and oil-based plants will follow administered prices when dispatched. This new approach is designed to protect consumers from excessive price spikes while keeping power generators financially viable.
ERC Chairperson Francis Saturnino Juan summed it up: “Our priority is clear—protect Filipino consumers while ensuring a stable and reliable power supply.”
For now, the WESM suspension and pricing changes aim to cushion the impact of volatile fuel prices and keep the lights on across the country.
The move comes as global tensions in the Middle East continue to drive up oil prices, with regulators aiming to keep electricity supply stable while preventing sudden spikes in consumers’ bills.
This action follows Malacañang’s declaration of a national energy emergency under Executive Order No. 110, citing disruptions in global oil supply. The ERC acted after receiving a recommendation from the Department of Energy, starting the suspension early Thursday, just after midnight.
During the WESM pause, the power system will operate under Special Operating Guidelines from the DOE, which focus on maximizing renewable energy, conserving critical fuel, and ensuring smooth dispatch across the grids. Operators like the Independent Electricity Market Operator of the Philippines (IEMOP) and National Grid Corporation of the Philippines (NGCP) are required to follow these rules.
Meanwhile, the ERC will implement a Modified Administered Pricing mechanism to better reflect current fuel costs. Coal plants will receive fixed rates, natural gas plants will be paid based on contracts, renewables like hydro and geothermal will get priority dispatch, and oil-based plants will follow administered prices when dispatched. This new approach is designed to protect consumers from excessive price spikes while keeping power generators financially viable.
ERC Chairperson Francis Saturnino Juan summed it up: “Our priority is clear—protect Filipino consumers while ensuring a stable and reliable power supply.”
For now, the WESM suspension and pricing changes aim to cushion the impact of volatile fuel prices and keep the lights on across the country.
Mar 26, 2026
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