Coal pegged at P6,000/MWh to curb price swings

The Energy Regulatory Commission (ERC) has pegged coal-fired power at P6,000 per megawatt-hour (MWh) under a new pricing scheme to stabilize electricity rates amid rising global fuel costs.

The regulator said Wednesday that under Resolution No. 10, Series of 2026, coal-fired plants will now receive a fixed price to ensure stable generation and prioritize plant dispatch. Other energy sources will follow existing pricing rules.

Solar, wind, run-of-river hydro, biomass, geothermal, and impounding hydro plants will be compensated using administered prices based on market averages from the four weeks before the suspension. 

“These plants are not eligible for additional compensation, as the ERC considers the administered price sufficient,” the commission said.

Oil-based, natural gas, battery energy storage, and pumped storage hydro plants will remain under the current administered pricing, with negative values set to zero. These generators can seek additional compensation for fuel and operational costs not fully covered. 

Any approved cost adjustments above P0.005 per kilowatt-hour (kWh) will be recovered gradually over three billing periods to ease the impact on consumers.

The ERC retained the existing pricing system for the reserve market, noting it remains responsive to actual system conditions.

“We will continue to closely monitor market conditions and implement timely measures to protect consumers while ensuring the stability and adequacy of our power supply,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

The modified administered pricing for the Wholesale Electricity Spot Market took effect on 26 March and will remain in place until the spot market operations resume.