Electricity rate seen to soar amid global tensions, summer demand

National

ELECTRICITY prices may increase by P2 to P4 per kilowatt-hour (kWh) in April due to rising global oil prices and higher power demand during the summer season, the Energy Regulatory Commission (ERC) said.

The expected increase follows disruptions in global oil supply after the U.S.-Israel conflict with Iran, which affected shipments passing through the Strait of Hormuz.

In a Philstar report, ERC Chairperson Francis Saturnino Juan said the projection is based on simulations by the Independent Electricity Market Operator of the Philippines (IEMOP), which operates the Wholesale Electricity Spot Market (WESM).

The potential spike would significantly raise spot market prices, which averaged P3.50 per kWh in February, if global fuel costs continue to climb.

“The marginal plant will be running on oil, so if the price of oil is like this, then this will be the kind of offers they will submit,” Juan stated on the sidelines of the 2026 Philippine Electric Power Industry Forum.

However, Juan clarified that higher WESM prices will not automatically translate to higher electricity bills, as the impact will depend on how much power utilities source from the spot market.

Meanwhile, the Department of Energy (DOE) is conducting audits in government offices to ensure compliance with energy-saving measures, including a target to reduce fuel and electricity consumption by 10 to 20 percent by 2026.(Iah Kennil Mirarza, BiPSU Comm Intern)