MANILA, Philippines - The Energy Regulatory Commission (ERC) has directed the Independent Electricity Market Operator of the Philippines (IEMOP) to recalculate power spot market transactions to eliminate excessive line rental charges incurred between March and April this year, which could lead to bill refunds for customers.
The commission on Wednesday said it issued a resolution introducing a one-time settlement adjustment to address unusually high line rental charges incurred from the Wholesale Electricity Spot Market (WESM) between March 26 and April 30, 2026.
The move is aimed at ensuring fairer electricity market settlements and protect consumers from unwarranted costs due to the effects of a market suspension, the commission said.
The resolution shall take effect immediately following publication in a newspaper of general circulation or the Official Gazette.
The ERC said it seeks to eliminate the affected line rental charges through recalculated market settlements, with any resulting adjustments or net credits required to be passed on directly to consumers by distribution utilities (DUs).
It directed IEMOP to complete the recalculations and submit the results within 45 calendar days from the resolution's effectivity.
Once approved, the regulator said IEMOP must issue separate, itemized settlement adjustment statements to affected market participants within three calendar days.
The move aims to address the surge in fees that arose from the implementation of the Modified Administered Price during the recent nationwide electricity market suspension under Executive Order No. 110, Series of 2026.
"This corrective measure ensures that electricity market settlements are fair, transparent, and properly accounted for, with any resulting credits or adjustments reaching consumers,” ERC Chairman and CEO Francis Saturnino C. Juan said.
The commission clarified that the measure applies exclusively to the March 26 to April 30, 2026 market suspension period and does not permanently change existing WESM pricing and settlement rules.
