ERC Resolution No. 14, Series of 2026 – BCQ Redeclaration and Settlement Guidelines During WESM Market Suspension
ERC issued clarificatory guidelines allowing one-time redeclaration of Bilateral Contract Quantities for coal plants and compensation for pump-storage hydro facilities during the WESM market suspension, addressing settlement exposures and supporting grid reliability under emergency conditions.
5/8/20263 min read
SUMMARY
WHAT IT IS
Clarifies and supplements the implementation of ERC Resolution No. 10, Series of 2026, specifically on the modified administered price for the Wholesale Electricity Spot Market (WESM) during the declared state of national energy emergency.
Coal-fired generation companies
KPSPP
NGCP
WESM trading participants
Market Operator
WHO IS AFFECTED
KEY DEADLINES
BCQ redeclaration: within 2 calendar days from effectivity.
KPSPP documentation: within 14 working days from issuance of WESM Final Statement Bill.
NGCP documentation: within 14 calendar days from effectivity.
TAKEAWAY
Coal-fired generators must promptly submit BCQ redeclarations to avoid settlement issues.
KPSPP should prepare documentation to claim compensation for NGCP-directed pumping operations.
KEY POINTS
Scope: Applies to the pricing and settlement of spot energy and reserve transactions in the WESM during the Market Suspension period following the declaration of a national energy emergency.
Covered Entities: Coal-fired generation companies and their counterparties, the Kalayaan Pump Storage Power Plant (KPSPP), the Market Operator, and the NGCP.
BCQ Redeclaration Mechanism: Authorizes a one-time Bilateral Contract Quantity (BCQ) redeclaration for coal-fired generation companies and their counterparties for trading intervals during the Market Suspension (ERC Case No. 2026-018 MC Order dated 25 March 2026).
Eligibility for BCQ Redeclaration: Applies only to verified instances where coal-fired generating units were available but constrained, curtailed, or ramped down by NGCP instructions; excludes outages, deration, fuel limitation, plant unavailability, commercial decisions, or generator-attributable causes.
Compliance Deadline: Coal-fired generation companies must submit BCQ redeclaration to the Market Operator within two (2) calendar days from the effectivity of the Resolution; late submissions will not be accepted.
Settlement of Exposures: Any exposure of load customers due to NGCP curtailment of coal-fired plants is to be settled outside the WESM, with costs borne by the generator in favor of its counterparty, based on the applicable PSA rate.
Market Operator Obligation: Must issue the Preliminary Billing Statement for April 2026 within two (2) calendar days from the BCQ redeclaration deadline.
Pumped Storage Hydro (KPSPP) Settlement: Maintains current treatment—pumping operations settled at customer administered price (AP); KPSPP may claim additional compensation for NGCP-directed pumping operations outside its nomination.
KPSPP Compliance: Must submit, within fourteen (14) working days from issuance of the WESM Final Statement Bill, a list of relevant trading intervals and supporting documents for compensation claims.
NGCP Obligation: Must submit all relevant instructions to KPSPP during the Market Suspension (26 March–30 April 2026) to the Market Operator within fourteen (14) calendar days from effectivity.
Cost Allocation: Pumping costs incurred by KPSPP under NGCP instructions will be allocated to WESM trading participants acting as customers on a pro rata basis according to their Gross Energy Settlement Quantity (GESQ).
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ERC Resolution No. 14, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
Suggested next actions
PREMIUM REGULATORY ANALYSIS
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Tags: WESM, Market Suspension, BCQ Redeclaration, Coal-Fired Generators, NGCP Curtailment, Pumped Storage Settlement