Philippines Halts Electricity Market Amid Fuel Crisis

The Philippines has halted electricity sales on the Wholesale Electricity Spot Market due to fuel risks from the Iran war. The Energy Regulatory Commission plans a new pricing scheme as fuel-induced price volatility affected rates. Unprecedented measures aim to stabilize energy costs amid geopolitical tensions.

The Philippines has suspended electricity sales on the Wholesale Electricity Spot Market. The government made this decision to address fuel supply risks and price volatility stemming from the Iran war. This suspension is a rare intervention in a country where electricity prices typically reflect market conditions.

The Energy Regulatory Commission anticipates finalizing a revised pricing strategy by Wednesday. Data shows that average spot power prices in the country have surged by 58% since the conflict between the U.S. and Israel began on February 28, greatly impacting fuel supplies.

With prices nearly doubling in Mindanao and Visayas, and rising by 42% in Luzon, the suspension follows Energy Secretary Sharon Garin's earlier warnings. The move ensures tariffs reflect current geopolitical and supply challenges, with an emphasis on renewable energy during this period.

(With inputs from agencies.)