ERC Resolution No. 10, Series of 2026 – Modified WESM Administered Price During Market Suspension
ERC issued a resolution prescribing a Modified Administered Price for WESM during the nationwide market suspension under the energy emergency, setting fixed and adjusted pricing mechanisms to balance generator cost recovery and consumer protection.
4/2/20263 min read
SUMMARY
WHAT IT IS
Sets a modified administered price (AP) mechanism for WESM energy and reserve transactions during the nationwide market suspension declared in response to a national energy emergency under EO 110.
WESM Participants
GenCos (especially coal, oil, gas, battery, pumped hydro)
Market Operator
DUs
RES
NGCP
WHO IS AFFECTED
KEY DEADLINES
Takes effect from 26 March 2026, 00:05H, and remains until market suspension is lifted.
Claims for additional compensation must be filed within 14 calendar days from issuance of WESM final statement; supporting documents due within 30 business days from Market Operator’s receipt of claim.
If customer rate impact exceeds PhP0.005/kWh, recovery is over three equal installments in successive billing periods.
TAKEAWAY
Eligible generators should prepare to file timely claims with supporting documentation for additional compensation.
All stakeholders should monitor ERC and Market Operator publications for updates and compliance requirements.
KEY POINTS
Scope: Applies to the pricing and settlement of spot energy and reserve transactions in the Wholesale Electricity Spot Market (WESM) during the period of market suspension declared effective 26 March 2026, pursuant to Executive Order No. 110, Series of 2026.
Covered Entities: All WESM participants, including generation companies (coal, oil-based, natural gas, battery energy storage, pumped storage hydro, solar, wind, run-of-river, biomass, geothermal, impounding hydro), the Market Operator, and the System Operator.
Requirements: Market Operator must publish the applicable Modified Administered Price (AP) values and include them in Post-Market Reports for transparency and monitoring.
Thresholds: For additional compensation claims, if the calculated customer rate impact exceeds PhP0.005/kWh, recovery shall be over three (3) equal installments across three (3) successive billing periods.
Deadlines:
Claims for additional compensation must be filed within fourteen (14) calendar days from issuance of the WESM final statement bill and settlement data.
Supporting documentation for claims must be submitted within thirty (30) business days from Market Operator’s receipt of the written claim.
Compliance Obligations:
Generating units eligible for additional compensation (oil-based, natural gas, battery energy storage, pumped storage hydro) must submit complete supporting documentation as per Section 10.2.2 of the WESM Billing and Settlement Manual.
Market Operator must implement and report the Modified AP as prescribed.
Mechanisms Introduced/Amended:
Modified Administered Price for coal set at a fixed PhP6,000/MWh; all other technologies follow the current AP methodology, with intervals of negative AP replaced by zero for settlement.
Oil-based, natural gas, battery energy storage, and pumped storage hydro facilities are eligible for additional compensation; other technologies are not.
No changes to the administered pricing mechanism for reserves; existing mechanisms remain in effect.
The Commission will periodically review and may adjust the Modified AP based on prevailing market conditions.
Effectivity: Resolution takes effect immediately upon publication in a newspaper of general circulation or the Official Gazette and remains effective until the Commission lifts the market suspension.
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ERC Resolution No. 10, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
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Tags: WESM Suspension, Administered Pricing, Coal Fixed Price, Additional Compensation, Settlement Rules, Generator Claims