The Department of Energy has backed the Energy Regulatory Commission’s move to apply the Secondary Price Cap on a per-grid basis, saying the policy could protect consumers in the Visayas and Mindanao from sharp electricity price increases during periods of tight supply.
Energy Secretary Sharon Garin said consumers in the two grids should not have to shoulder unusually high electricity prices when power supply is constrained. She added that the government is also working to restore unavailable power plants, expand battery reserves and address prolonged outages.
The ERC said the regional price cap will take effect beginning with the August 2026 billing period.
Under the new approach, lower Wholesale Electricity Spot Market prices in Luzon, where supply conditions are more stable, could help temper rates in the Visayas and Mindanao, which have experienced higher prices due to supply shortages.
Based on ERC simulations, the average WESM price in the Visayas for August could fall from Php 18.59 per kilowatt-hour to about Php 8.47 per kWh.
In Mindanao, the average price could decline from Php 19.56 per kWh to around Php 8.69 per kWh.
The ERC said the actual impact on consumers will vary depending on each distribution utility’s exposure to the spot market and the overall power supply mix in its respective grid.
