OPERATIONS of the Wholesale Electricity Spot Market (WESM) resumed on Friday after regulators lifted an approximately monthlong suspension prompted by the war in the Middle East.
“After a thorough review, we have concluded that resuming normal WESM operations is the most suitable course of action at this juncture,” Energy Regulatory Commission Chairman and CEO Francis Saturnino Juan said on Friday.
“This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” he added.
WESM operations were halted on March 26 after Malacañang declared a national energy emergency. Instead of normal market trading, the ERC implemented special operating guidelines that included prioritizing the dispatch of renewable energy resources and conserving fuel inventories.
A modified administered pricing mechanism was also adopted.
“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,” Juan said.
The ERC said it would continue to monitor WESM price, fuel supply developments and power system reliability to help ensure stable and reasonable rates for all consumers.
It added that it would not hesitate to again suspend market operations should circumstances warrant.