ERC clears WESM fees to steady prices

Electricity consumers are expected to benefit from more stable power prices and a more reliable spot market after the Energy Regulatory Commission (ERC) approved the market fees that will fund the operations of the Wholesale Electricity Spot Market (WESM) from 2025 to 2027.

Citing an order dated 16 October, the ERC said on Monday that market fee was set at P0.0071 per kilowatt-hour, which will be collected from power generators trading in WESM. 

The fee will cover the operational, administrative, and capital expenditures of the Independent Electricity Market Operator of the Philippines (IEMOP), the market operator, and the Philippine Electricity Market Corp. (PEMC), which governs WESM.

“This approval is a key step in the ongoing reform of the electricity market. It ensures IEMOP and PEMC can operate sustainably and fulfill their mandates, balancing industry needs with accountability to consumers,” ERC Chairperson and CEO Francis Saturnino C. Juan said. 

“This decision is part of our continuing efforts to promote a secure, competitive, and consumer-oriented power industry.”

The ERC said the approved fees will sustain essential market services such as pricing, settlement, and data reporting—functions that promote transparency and efficiency in the spot market and help manage electricity price volatility.

The regulator added that predictable market fees also support investor and generator confidence in the competitive power market.

Unlike previous years, the ERC approved a fixed rate not just for 2025 but also for the 2026–2027 period to give IEMOP and PEMC the ability to plan and implement programs more efficiently. 

The budget includes funding for information technology infrastructure and cybersecurity upgrades to safeguard market systems.