ERC sets fixed P6/kWh rate for coal power amid crisis

The Energy Regulatory Commission (ERC) has set a fixed price of P6,000 per megawatt-hour (MWh), or P6 per kilowatt-hour (kWh), for coal-fired power generation after suspending operations of the Wholesale Electricity Spot Market (WESM) to help stabilize power prices amid the Middle East crisis.

In a statement on Wednesday, the ERC said it issued Resolution No. 10, Series of 2026, which took effect on March 26.

The resolution adopts a modified administered pricing mechanism while WESM operations remain suspended nationwide “to help stabilize electricity rates and optimize the allocation of generation resources.”

Under the resolution, the regulator imposed a fixed price for coal-fired power plants to ensure stable generation and prioritize their dispatch.

The modified pricing mechanism will remain in effect until the ERC lifts the suspension of WESM operations.

“The measure follows the declaration of a state of national energy emergency by President Ferdinand Marcos Jr., amid rising global fuel prices and supply uncertainties driven by geopolitical tensions in the Middle East, and the recommendation of the Department of Energy (DOE) to suspend WESM,” the ERC said.

The commission added that other energy sources will continue to follow existing pricing methodologies.

Solar, wind, run-of-river hydro, biomass, geothermal, and impounding hydro plants will be compensated using administered prices based on market rates in the four weeks prior to the suspension, with adjustments to ensure reasonable cost recovery.

“These plants, however, are not eligible for additional compensation, as the ERC considers the administered price sufficient,” it said.

Oil-based, natural gas, battery energy storage, and pumped storage hydro plants will likewise follow the existing administered pricing scheme, with negative values set to zero.

“These generators may apply for additional compensation to recover fuel and operating costs not fully covered by the administered price,” the ERC said.

The commission added that approved cost adjustments exceeding P0.005 per kWh will be recovered gradually over three equal installments in successive billing periods to cushion the impact on consumers.—MCG, GMA News