MANILA – The Energy Regulatory Commission (ERC) has reassured the public that monitoring systems and regulatory safeguards are in place to prevent power producers from taking advantage of the ongoing spike in global oil prices.
The statement was issued after the ERC held discussions with the Independent Electricity Market Operator of the Philippines (IEMOP) earlier this week.
According to IEMOP’s analysis, rising fuel costs could drive up prices in the Wholesale Electricity Spot Market (WESM). The commission noted that the situation may worsen if large generating units experience unexpected shutdowns, which could tighten electricity supply.
To prevent possible manipulation, the ERC instructed IEMOP and the Market Operations Service (MOS) to intensify surveillance of market activities and quickly report any suspicious behavior.
The regulator emphasized that these steps aim to ensure that no market participant exploits prevailing conditions, particularly during periods of heightened volatility in global fuel prices.
During the meeting, IEMOP also presented projections on how higher global prices of coal, oil, and liquefied natural gas, as well as potential supply constraints, could affect the country’s power system.
ERC Chairperson and Chief Executive Officer Francis Saturnino Juan said the initiative is part of the agency’s proactive monitoring efforts.
“We are conducting stress tests to better understand potential risks and make sure consumer protection measures are ready if global price fluctuations continue,” Juan said.
He stressed that protecting consumers from excessive price increases while maintaining a dependable electricity supply remains the agency’s main priority.
Oil companies and government agencies have not yet released next week’s fuel price adjustments as they continue to assess movements in the international market.
Oil prices at the New York Mercantile Exchange (NYMEX) recently surpassed USD81 per barrel.
Jetti Petroleum president Leo Bellas said the Mean of Platts Singapore (MOPS), the benchmark used for Asian oil products, climbed sharply as crude supply shortages affected the market.
Bellas explained that some Asian refiners are struggling to obtain replacement crude shipments. Several Chinese refineries have reportedly scaled down operations and halted fuel exports, reducing available supply across the region.
He added that additional cuts in refining activity could further tighten fuel supply in the coming weeks.
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