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MEDIA RELEASE
16 September 2026
DOE Supports ERC's Regional Price Cap to Lower Electricity Prices in Visayas, Mindanao
The Department of Energy (DOE) welcomed the Energy Regulatory Commission’s (ERC) decision to apply the Secondary Price Cap (SPC) to the Visayas and Mindanao grids, strengthening consumer protection against electricity price spikes during periods of tight power supply.
The regional application, effective beginning with the August 2026 billing period, addresses a gap in the previous system-wide mechanism. Under that arrangement, lower prices in Luzon pulled down the national rolling average, preventing the SPC from being triggered even as consumers in the Visayas and Mindanao faced substantially higher Wholesale Electricity Spot Market (WESM) prices.
Based on the ERC’s simulation, the regional SPC could bring the average August WESM price in the Visayas down from ₱18.59 per kilowatt-hour (kWh) to ₱8.47/kWh, or by 54 percent. In Mindanao, it could reduce the average from ₱19.56/kWh to ₱8.69/kWh, or by 56 percent.
“Consumers in the Visayas and Mindanao should not have to bear extraordinary electricity prices when supply becomes tight. The regional price cap gives them immediate protection, and alongside this measure, we are working to strengthen power supply: bringing unavailable plants back online, building up battery reserves,, and addressing recurring and prolonged outages,” Secretary Garin said.
The effect on individual electricity bills will vary according to each distribution utility’s exposure to the spot market and overall power-supply mix. The ERC directed distribution utilities to reflect the recalculated SPC-based charges promptly and accurately in consumer bills.
The Independent Electricity Market Operator of the Philippines (IEMOP) was also ordered to recalculate the August 2026 market settlements and issue the revised Final Statement Bills on or before 20 September 2026. The regional computation will apply to succeeding billing periods.
The DOE likewise supports the ERC’s directive for the Philippine Electricity Market Corporation, through its Market Surveillance Committee, to examine the bidding, offer, and dispatch behavior of generators during periods of unusually high prices.
The DOE will continue coordinating with the ERC and other power-sector agencies and stakeholders to stabilize electricity supply, monitor market conduct, and ensure that the recalculated charges are properly reflected in consumer bills. ###