The Energy Regulatory Commission (ERC) is pushing for critical updates to Philippine power market rules and systems, aiming to fix current gaps and adapt to modern energy needs. The proposed changes carry major policy weight, as they seek to make power supply more reliable, affordable, and responsive to changing conditions.
ERC chairman Francis Saturnino Juan outlined the plans during a recent energy forum, noting that recent power outages arose from insufficient reserves—not transmission or fuel issues. A core proposal is shifting from fixed power reserve requirements to dynamic, weather-linked targets, so supply can automatically adjust when demand rises, such as during heatwaves.
Regulators will also speed up procurement for support services and fast-responding power capacity, while opening these opportunities to more battery storage, demand-response programs, and hybrid renewable projects. This addresses a key issue: midday oversupply of solar power that often goes to waste, which could instead be stored and used during evening peaks.
Other policy shifts include introducing time-of-use rates and incentive programs that pay businesses to reduce consumption during critical hours—seen as the most cost-effective way to balance supply. The ERC also plans to review price caps in the wholesale electricity market, ensuring they act only as emergency safeguards and do not discourage needed investments.
Additional reforms cover stronger grid connections and a new public dashboard with real-time alerts and prices in simple English and Filipino, to improve transparency.
Industry leader Jose Victor Emmanuel de Dios of Prime CoreGen praised government efforts to attract private investment, stressing that public-private collaboration remains vital. His firm continues to invest in expanding resources from the Malampaya gas field, the country’s main domestic gas source.
Overall, these reforms mark a policy shift toward a more flexible, inclusive, and modern power system—designed to prevent shortages, cut waste, and encourage long-term investment.
