ERC sets P25/kWh cap on power reserve market price

The Energy Regulatory Commission (ERC) has set a ceiling price of P25 per kilowatt-hour (kWh) on the backup power that can be offered to the National Grid Corp. of the Philippines.

- By BRIX LELIS

In a recent commission meeting, the ERC resolved to adopt an offer price floor of zero per megawatt-hour and a price cap of P25,000 per MWh, equivalent to P25 per kWh, in the country's reserve market.

The offer floor and price cap are the minimum and maximum price offered by generation companies in the reserve market.

"The interim offer price floor and cap shall be reviewed and recomputed one year after its implementation, contingent on the collection of sufficient data from the annual submissions of generation companies," the ERC said.

Reserves, commonly referred to as ancillary services (AS), provide backup power to maintain balance and stability in the power grid, ensuring normal frequency and voltage levels despite supply-demand imbalances.