Regulators cite price volatility and supply risks as they move to implement a modified pricing scheme expected to take effect by April 1.
MANILA — The Philippines’ energy market regulator suspended the country’s wholesale electricity spot market across all three grids on Thursday, citing fuel supply risks and persistent price volatility stemming from the ongoing conflict in the Middle East.
The Energy Regulatory Commission (ERC) announced the indefinite suspension in a statement, saying it has proposed the implementation of a modified administered pricing mechanism to stabilize the market. The new pricing framework is expected to be finalized by April 1.
“Under the proposed scheme, coal plants may be paid at a fixed rate, natural gas plants based on contracted prices, and renewable energy sources such as hydro and geothermal, under administered pricing with preferential dispatch,” the ERC said.
The move reflects growing concern among Philippine energy authorities over the vulnerability of the country’s power supply to geopolitical shocks. The Philippines relies heavily on imported fossil fuels, making its electricity sector particularly exposed to disruptions in global energy markets—especially those flowing from the Middle East, a key source of oil and natural gas.
By suspending the wholesale electricity spot market and shifting to administered pricing, regulators aim to shield consumers from sudden spikes in power rates while ensuring grid stability. The suspension applies to all three of the country’s main grids: Luzon, Visayas, and Mindanao.
The ERC said the proposed pricing structure is designed to balance the interests of consumers and generation companies during a period of heightened uncertainty, with preferential dispatch given to renewable energy sources to support the country’s transition goals while maintaining reliability.
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