The Department of Energy (DOE) has backed a regulatory shift to impose regional electricity price caps, a move expected to shield Visayas and Mindanao consumers from massive bill spikes caused by severe power plant outages.
In a statement Wednesday, the DOE lauded the Energy Regulatory Commission’s (ERC) decision to implement the Secondary Price Cap (SPC) on a per-grid basis, effectively cutting average spot market rates by over half.
“Consumers in the Visayas and Mindanao should not have to bear extraordinary electricity prices when supply becomes tight. The regional price cap gives them immediate protection, and alongside this measure, we are working to strengthen power supply: bringing unavailable plants back online, building up battery reserves, and addressing recurring and prolonged outages,” Energy Secretary Sharon Garin said.
ERC earlier said the SPC will be implemented starting the August 2026 billing.
Under this policy, the lower Wholesale Electricity Spot Market (WESM) prices in Luzon —which remain stable due to adequate power supply— could pull down rates in the Visayas and Mindanao, where prices have been rising due to ongoing supply issues.
Under the Commission’s simulation, SPC could reduce average WESM price in the Visayas for August by around half, or from PHP18.59 per kilowatt-hour (kWh) to PHP8.47/kWh.
For Mindanao, the average price may decline to PHP8.69/kWh from PHP19.56/kWh.
The regulator said the impact of these changes will vary depending on the distribution utilities’ WESM exposure and the over-all supply mix in the grids. (With a report from Joann Santiago-Villanueva/PNA)
