In a resolution, the ERC extended the cap on the spot market's secondary prices by 120 days from
The ERC earlier approved the imposition of the secondary price cap for 45 days from May to
The ERC's approval came after prices on the WESM increased late in 2013 and early this year due to reduced power generation caused by the unavailability of a number of plants.
This resulted in a record increase in Meralco's rates in
The secondary price cap of P6.245 per kilowatt-hour (kWh) will take effect should the average offers of power generators at the WESM breach P8.186 per kWh over a 72-hour period.
This was meant to prevent WESM prices from spiking amid limited power generation during the summer months. The secondary price ceiling will remain in effect until succeeding offers of power firms reduce the market average to below the P8.186 per kWh threshold.
Before the imposition of the secondary price ceiling, the price cap at the WESM stood at P32 per kWh.
The ERC also adopted a permanent preemptive mitigating measure that will be applied in the WESM.
The group also maintained that the ERC could only intervene in the WESM on the grounds of national or security emergencies.
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