The Energy Regulatory Commission (ERC) has warned that electricity prices in the Philippines could rise as global fuel costs increase due to escalating tensions in the Middle East.
Citing projections from the Independent Electricity Market Operator of the Philippines (IEMOP), the ERC said prices in the Wholesale Electricity Spot Market (WESM) may climb if disruptions in global fuel supply persist.
Stress tests conducted by the agency considered potential increases in coal, oil, and liquefied natural gas (LNG) prices, as well as supply constraints.
ERC Chairperson Francis Saturnino Juan emphasized the need for preparedness.
“This is part of our proactive approach. We conduct stress tests to understand possible risks early and ensure that consumer protection mechanisms are in place should global fuel volatility persist,” he said.
“Our priority is to protect consumers from undue price volatility while ensuring a stable and reliable power supply.”
The commission noted that safeguards such as the Secondary Price Cap remain in place to automatically temper sustained electricity price spikes.
ERC also instructed IEMOP and its Market Operations Service to intensify monitoring to detect unusual market behavior that could indicate abuse of power.
Meanwhile, the Department of Energy (DOE) warned that fuel prices could rise further following reports of the closure of the Strait of Hormuz, a key global oil shipping route. The agency said it would appeal to oil companies to stagger price hikes to ease consumer impact.
Manila Electric Company (Meralco) also announced it is reviewing its fuel supply position, particularly LNG sources, to assess potential effects on electricity rates.
The developments come as oil industry sources expect a significant pump price increase next week, following reports of U.S.-Israeli airstrikes that killed Iran’s Supreme Leader Ali Khamenei, with U.S. President Donald Trump confirming ongoing combat operations in Iran.