ERC reviewing secondary price cap after DoE cites potential to unlock investment - BusinessWorld Online

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The Energy Regulatory Commission (ERC) said it is reviewing the secondary price cap after the Energy department said its removal could attract more investment in energy. READ:

February 1, 2023 | 8:08 pm

“The ERC is evaluating the mechanics of the secondary price cap given, on one hand, its clear mitigating impact on rates charged to consumers exposed to WESM prices; on the other hand, the distortion it creates on price signals that should have allowed us to see the real cost of generation and need for more capacity,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a Viber message.

Mr. Lotilla said the secondary price cap was difficult to lift because of its impact on prices but the DoE “will have to deal with this if we want to attract more investments.” Ms. Dimalanta said that for several months last year, the price cap was triggered in more than 50% of trading intervals in the WESM. “This means that the cap — instead of the market — was setting the price.”

 

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