The Energy Regulatory Commission imposed an interim price cap of P25 per kilowatt-hour for the reserve market to be recalculated after a year.
It would then start its review of the existing offer price floor and cap every five years from the implementation of the revision in the interim rules adopted, or when otherwise deemed necessary by the regulator. During the initial commercial operation of the reserve market, the Department of Energy temporarily implemented a price cap of P32,000 per MWh, equivalent to P32 per kWh, and a price floor of 0 pesos per MWh.The ERC said it aimed to “set a reasonable offer ceiling that will limit excessive pricing in the market and prevent windfall profits for ancillary service providers, with the end view of protecting consumer interest.