The Energy Regulatory Commission said Friday the suspension of the spot market during red alerts reduced prices by up to 66 percent from what they would have been without the suspension.
It said it decided to order the suspension of the spot market to shield consumers from the high prices amid the tight supply situation.
The ERC, pursuant to its order dated April 30, 2024, directed the suspension of trading in the Wholesale Electricity Spot Market (WESM) in Luzon and the Visayas in three occasions. This froze WESM pricing for a total of 1,997 intervals in Luzon and 402 in the Visayas from May 23 to May 31, 2024.
“Data show that with the suspension, the prices were reduced by 66 percent and 64 percent in Luzon and Visayas regions, respectively, from what the prices would have been without the suspension. The suspension prevented the likely increase of WESM prices to P27.637 per kilowatt-hour in Luzon and P27.366 per kWh in the Visayas,” the regulator said.
It said that without the suspension on May 23 at 1:05 p.m. to May 25 at 12:50 a.m. in Luzon, real time prices at the WESM reached a high of P27.637 per kWh.
This would have been the resulting price paid by consumers to generators if the ERC did not suspend the market during red alert compared to the P9.362 per kWh indicative price when suspended, it said.
The ERC said this translated into a 66-percent decrease in the average indicative prices in the Luzon grid. WESM prices were at P5.657 per kWh before the red alert on May 23.
It said the market suspension on May 27 at 1:05 p.m. to May 28 at 9 p.m. reduced electricity prices by 53 percent as prices would have gone up to P23.384 per kWh.
“The P23.384 per kWh is the resulting price paid by consumers to generators if the ERC did not suspend the market during red alert compared to the resulting P10.960 per kWh indicative price when suspended. This results in a 53-percent decrease in the average indicative prices in Luzon region,” it said.
