ERC hikes WESM secondary price cap by 19% to P7.423 per kWh

The Energy Regulatory Commission (ERC) has increased the secondary price cap (SPC) in the Wholesale Electricity Spot Market (WESM) by 19% to P7.423 per kWh.

This revised cap will be activated when the 72-hour average electricity price exceeds P12.413 per kWh, a change from the previous P9 per kWh trigger.

ERC chair and CEO Francis Saturnino Juan stated that the recalibration was necessary to keep the price cap responsive to prevailing market conditions, especially during peak demand periods when higher-cost plants are dispatched.

The changes aim to balance market stability, fair pricing, and reliable power supply for consumers.

The SPC functions as a preemptive safeguard in the spot market, designed to prevent sustained price surges during periods of tight supply.