Group: ERC order may destabilize power market

By Manila Standard Business – May 3, 2024, 9:35 pm
from manilastandard.net

Partners for Affordable & Reliable Energy (PARE), a group that advocates for pro-consumer solutions to address energy needs, said it welcomes the decision by the Energy Regulatory Commission (ERC) to suspend trading in the Wholesale Electricity Spot Market (WESM) under certain conditions.

Under the ERC’s directive, WESM trading is suspended once the National Grid Corporation of the Philippines (NGCP) declares a red alert for Luzon and Visayas.

“This initiative by the ERC benefits consumers in certain ways as it prevents them from experiencing the immediate effects of unexpected price surges. This is a victory for consumers in light of the continued rising price of goods and services in the market today,” PARE chief advocate officer Nic Satur Jr. said.

The group said, however, changes in WESM’s trading operations should not be seen as a strategy for the long term as there could be unintended consequences to the ERC’s policy.

“On the other hand, suspending trading in WESM under certain conditions could destabilize the energy market. This could lead to power generators and other market participants withholding supply due to the uncertainty created as a result of the ERC’s policy,” Satur said.

PARE said long-term solutions should be implemented to increase the available power supply to meet consumer demand.

“These solutions must be anchored in ensuring all available power-generating units are fully operational, enforcing regulations on all stakeholders, and achieving an energy mix that is affordable, reliable, and sustainable to consumers,” Satur said.

“By implementing them, Filipinos will achieve higher standards of living in their households,” he said.