President Ferdinand Marcos Jr. directed the Energy Regulatory Commission (ERC) to suspend the operations of the Wholesale Electricity Spot Market (WESM) when a system operator or the National Grid Corporation of the Philippines (NGCP) declares a red alert.
The President explained that the directive seeks to address the rising cost of electricity caused by increased consumption due to the extreme heat.
"Ito ay naglalayon na pigilan ang pagtaas ng presyo ng kuryente sa gitna ng kalamidad na dulot ng El Niño," President Marcos said on Wednesday, May 1, during a speech in Malacanang.
In the past weeks, the Luzon and Visayas grids raised yellow and red alert notices due to the increased demand for electricity.
In a statement, the ERC mentioned that the Republic Act 9136, also known as the Electric Power Industry Reform Act, authorizes the agency 'to suspend the operation of the WESM or declare a temporary WESM failure in cases of national and international security emergencies or natural calamities'.
"With the recorded increasing temperature, the government’s Task Force El Niño reported that there are One Hundred Three (103) cities and municipalities that have already declared a State of Calamity due to the extreme heat conditions being experienced nationwide," ERC said.
"On this basis, the Commission has determined the occurrence of conditions equal to or comparable to a natural calamity," the agency added.
