The Department of Energy (DOE) has ordered the full dispatch of indigenous energy sources and coal-fired plants to shield consumers from soaring electricity costs, projecting it could cut spot market prices by up to P2 per kilowatt-hour.

The agency said Thursday the directive covers generation companies, distribution utilities, the National Grid Corporation of the Philippines (NGCP), the Independent Electricity Market Operator of the Philippines (IEMOP), and other market participants.

“As a net importer of oil, coal, and liquefied natural gas (LNG), we are acting with heightened discipline to preserve power system reliability in the face of escalating global fuel market volatility,” Energy Secretary Sharon S. Garin said. 

“This is a decisive intervention to protect the grid, manage fuel use responsibly, and ensure that essential electricity services remain uninterrupted,” she added. 

Citing simulations by IEMOP, the DOE said Wholesale Electricity Spot Market prices  could surge above P9 per kilowatt-hour due to the Middle East conflict, compared with pre-conflict averages of P5 per kilowatt-hour or less. 

As such, full dispatch of local energy and coal-fired plants is a critical buffer to moderate these spikes.

Generation companies have been ordered to monitor fuel inventories, maintain a 15-day supply, explore alternative fuels, and report any supply risks immediately. 

Off-grid utilities are also being urged to optimize generation, secure fuel, and manage demand to protect isolated systems.

The DOE said these steps are part of the government’s broader emergency response under Executive Order 110, which declared a national energy emergency to safeguard energy adequacy, stability, and affordability.