The Energy Regulatory Commission (ERC) has approved the collection of approximately P3.05 billion from power consumers to settle deferred payments due to the suspension of the energy reserves market in February and March this year.
In a statement, the ERC confirmed the recovery will begin in the January 2025 billing cycle. The collection will be done in staggered fashion, with Luzon and Mindanao participants of the Wholesale Electricity Spot Market (WESM) paying within three months, while those in the Visayas will have six months to settle their share.
The ERC suspended operations of the energy reserves market earlier this year, citing its role in driving up power rates. In May, however, the commission partially lifted the suspension, allowing power generators to recover a portion of their costs at the March billing cycle, amounting to P1.7 billion.
The P3.05 billion to be collected has a rate impact of P0.124 per kilowatt-hour (kWh) for consumers in Luzon and the Visayas, while Mindanao consumers will face a smaller P0.033 per kWh adjustment.
The energy reserves market is crucial for maintaining the National Grid Corporation of the Philippines’ contingency reserves, where power generators offer their capacity for ancillary services to meet unexpected power shortages.
