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Manila Bulletin devider Business devider ERC suspends Luzon's electricity market due to tight supply

ERC suspends Luzon's electricity market due to tight supply

Published May 27, 2024 06:15 am

The Energy Regulatory Commission (ERC) has directed the suspension of the Wholesale Electricity Spot Market (WESM) for the Luzon Region effective Monday afternoon, May 27, due to insufficient generation capacity in the grid.

In a statement, ERC said the decision to suspend WESM operations followed the declaration of a "Red Alert" status on the Luzon grid by the National Grid Corporation of the Philippines (NGCP) owing to inadequate power supply.

A Red Alert status indicates that the generation capacity is insufficient to meet consumer demand and grid regulatory requirements.

The ERC's action is in compliance with its Order titled "In the Matter of Declaration of Market Suspension During Red Alerts During the Summer Months of 2024," issued last April 3, which references a violation of Article II Section 1.A of ERC Resolution No. 12, Series of 2018, concerning market suspension or temporary market failure in the WESM operation due to generation deficiencies.

Subsequent to the suspension, the ERC has instructed the Independent Market Operator of the Philippines (IEMOP) and the NGCP to manage the market and power system following the WESM Rules and the ERC Order issued on April 30, 2024.

The WESM operations will remain suspended until the ERC issues a Notice of Market Resumption.

Related Tags

Wholesale Electricity Spot Market (WESM) Energy Regulatory Commission (ERC)
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