ERC moves to impose secondary price cap before Reserve Market restart
Published · Updated
What happened
The Energy Regulatory Commission announced that it will impose a secondary price cap in the Reserve Market before market operations resume, with defined trigger levels and cap values for regulating, contingency, and dispatchable reserves.
Why it matters
The Reserve Market affects the price of ancillary services procured to keep the grid stable. A cap can limit cost pass-through to consumers and distribution utilities, but it can also change generator bidding behavior and reserve availability when the market restarts.
The Energy Regulatory Commission said on November 9 that it is moving to set a secondary price cap in the Reserve Market before trading resumes. The proposed mechanism would apply trigger levels and capped prices for regulating, contingency, and dispatchable reserves after earlier concerns over high reserve prices. The move sets up a near-term regulatory choice on how to contain pass-through power costs without weakening incentives for generators to offer reserve capacity needed for grid reliability.
Watch for
Energy Regulatory Commission issuance of the draft or final resolution setting the secondary price-cap formula and trigger thresholds on or after 2026-11-10 Independent Electricity Market Operator of the Philippines notice on Reserve Market resumption timing and operating parameters on or after 2026-11-10 Department of Energy statement on whether the ERC cap design is supported as an interim consumer-protection measure on or after 2026-11-10 National Grid Corporation of the Philippines data or advisory showing reserve requirement conditions for Luzon, Visayas, or Mindanao after 2026-11-09
Sources
- ERC to cap costly power reserve prices · philstar.com
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