THE Energy Regulatory Commission (ERC) is temporarily suspending the operation of the Wholesale Electricity Spot Market (WESM).
During the celebration of the 122nd Anniversary of Labor Day at Malacañang on Wednesday, May 1, 2024, President Ferdinand ‘Bongbong’ Marcos said that the surge in electricity consumption, fueled by the intense heat, is driving up prices.
As a result, the ERC temporarily suspended the operation of the WESM.
This is done in response to a Red Alert declaration by the System Operator, the National Grid Corporation of the Philippines (NGCP).
The move aims to prevent the rise in electricity prices triggered by El Niño.
The Wholesale Electricity Spot Market was created under Section 30 of Republic Act No. 9136, also known as the Electric Power Industry Reform Act (EPIRA) of 2001.
It serves as a trading platform for electricity in the Philippines, where prices are determined by the prevailing demand and the capacity of generators.
According to the Philippine government, the power system is experiencing overload due to drought.
Therefore, the government continues to monitor the situation due to the increasing demand.
The NGCP is also urged to construct transmission lines to strengthen electricity supply, particularly in areas that lack grid connectivity.
