SINGAPORE: The Philippines on Thursday (March 26) said it had suspended spot sales of electricity until further notice due to fuel supply risks and price volatility caused by the Iran war.
The suspension was ordered under a decree that declared a state of national energy emergency to deal with the fallout from the war, including disruptions to fuel procurement.
The country's Energy Regulatory Commission (ERC) said it expects to finalise a modified pricing scheme by April 1.
The suspension follows through on plans flagged by Energy Secretary Sharon Garin in an interview with Reuters this month, in which she said the government would intervene in the market to stop a projected 16% surge in power bills.
A modified pricing scheme was being adopted as historical market prices no longer "reflect current conditions marked by geopolitical tensions and fuel supply constraints," the commission said.
During the suspension, the country's power system will operate under guidelines that aim to prioritise renewable energy and conserve critical fuel inventories, it said.
"Coal plants may be paid at a fixed rate, natural gas plants based on contracted prices," a statement from the commission said.
It expects the suspension will remain in effect until the conditions are suitable for the safe resumption of normal market operations, the statement read. - Reuters
