The Department of Energy (DOE) has thrown its support behind the Energy Regulatory Commission’s (ERC) imposition of a Secondary Price Cap in the Visayas and Mindanao, aimed at shielding electricity consumers from severe cost surges during periods of restricted power supply.
Data from ERC simulations indicates that the average Wholesale Electricity Spot Market (WESM) price in the Visayas could drop by 54 percenr, from P18.59 to P8.47 per kilowatt-hour. Meanwhile, Mindanao’s average WESM rate is anticipated to fall by 56 percent, from P19.56 to P8.69 per kWh.
However, the DOE clarified that these lower market figures will not translate into an equivalent percentage drop on monthly residential electricity bills, as final customer costs depend heavily on the specific energy mix managed by local distribution utilities.
To implement the directive, the Independent Electricity Market Operator of the Philippines (IEMOP) has been instructed to re-evaluate the August 2026 market settlements and release revised statements on or before September 20.
Alongside price interventions, the DOE is actively pursuing long-term grid stability by restoring operations at idle power generation plants and expanding national battery reserve capabilities.