Manila: The Energy Regulatory Commission (ERC) has issued clarificatory guidelines on the implementation of the Modified Administered Price (MAP) in the Wholesale Electricity Spot Market (WESM), aiming to shield consumers from spikes in electricity prices amid prevailing market uncertainties. Under ERC Resolution No. 14, Series of 2026, industry players are required to adopt a one-time Bilateral Contract Quantity (BCQ) redeclaration mechanism for coal-fired power plants that were available but constrained or curtailed due to System Operator instructions.
According to Philippines News Agency, the guidelines were issued following concerns raised by stakeholders after the temporary suspension of WESM operations nationwide to cushion the impact of the Middle East crisis on the domestic power sector. The suspension also came after Malaca±ang issued Executive Order (EO) 110 declaring a state of national energy emergency.
The ERC stated that the resolution allows affected power generators and their counterparties to align contracted energy volumes with actual dispatch conditions during the suspension period. The commission, however, clarified that 'any exposure of the load arising from the redeclaration shall be borne by the coal-fired power plant in favor of its counterparty.'
Furthermore, the ERC retained the existing settlement treatment for the Kalayaan Pumped Storage Power Plant (KPSPP), with transactions continuing to be settled at the customer administered price. The commission also authorized the KPSPP to claim additional compensation for pumping operations undertaken upon instruction of the National Grid Corporation of the Philippines (NGCP), recognizing its role in maintaining grid stability and ensuring that system support services are fairly compensated.
ERC Chairperson and Chief Executive Officer Francis Saturnino Juan remarked that the resolution seeks to ensure stability and fairness in the electricity market during extraordinary conditions. "This Resolution ensures that extraordinary market conditions are managed in a fair, transparent, and orderly manner. By clarifying settlement rules and addressing unintended cost exposures, we are protecting consumers from unnecessary price volatility while preserving the integrity of the electricity market," Juan stated.
