ERC lifts suspension on WESM operations

The Energy Regulatory Commission (ERC) ordered the resumption of the Wholesale Electricity Spot Market (WESM) operations nationwide on Friday, allowing trading more than a month after it was temporarily suspended.

WESM operations were suspended on March 26 to address energy supply risks and volatile electricity prices due to the Middle East tensions.

“After a thorough review, the Commission has concluded that resuming normal WESM operations is the most suitable course of action at this juncture. This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” ERC Chairperson Francis Saturnino Juan said in a news release.

“We observed that although the temporary pricing mechanism was effective in addressing the emergency, prolonging its use could lead to unintended charges in market settlements,” he added.

The WESM is the electricity trading market where power generators sell electricity and distribution utilities, electric cooperatives, and suppliers buy power when needed. Prices in the WESM change depending on the price offers of generators, available transmission capacities, and supply and demand conditions.

According to the ERC, it will continue to monitor electricity prices in the WESM, fuel supply developments, and power system reliability to help ensure stable and reasonable rates for all consumers. It also said it will declare market suspension anew should the circumstances warrant the reimposition of the administered prices. — Sundy Locus/RSJ, GMA News