The Energy Regulatory Commission proposed an interim price cap of P19 per kilowatt-hour for the reserve market, subject to consultations and additional data from power generators.
The ERC drafted a resolution on “Setting an Interim Offer Price Cap as Mitigating Measure for the Trading of Reserves in the Wholesale Electricity Spot Market .” Simulations conducted on the proposed P19,000 per MWh cap showed that it would result in an annual net revenue requirement greater than the computed annual market revenue.
“The interim offer price cap shall be reviewed and recomputed one year after its implementation, contingent on the collection of sufficient data from the annual submissions of generation companies,” the ERC said.
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