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Focusing on regulatory oversight and the future evolution of the power sector, the Philippine Electricity Market Corporation (PEMC) hosted the Electricity Market Exchanges (EMX) 2026 as a centerpiece of the Wholesale Electricity Spot Market’s (WESM) 20th anniversary milestone.

Keynote speaker Energy Regulatory Commission (ERC) Chairperson Hon. Francis Saturnino C. Juan addressed critical regulatory issues, including system loss pass-through costs, market concentration, and the changing energy mix. Chairperson Juan explained that system loss charges cover electricity lost during delivery—a cost tied to generation and procurement rather than distribution utilities, which operate on a revenue-neutral pass-through basis subject to strict ERC caps.

Looking ahead to WESM’s next two (2) decades, Chairperson Juan emphasized the need for heightened regulatory vigilance and structural adaptability amidst market concentration and emerging technologies:

"In a market where there is high concentration of market power in the hands of a few participants, there is need for closer monitoring to ensure that those with market power will not abuse that market power or resort to anti-competitive behavior... We should be more vigilant in our monitoring efforts, so we ensure that there remains to be competition happening and that prices are not unduly inflated to the detriment of our electricity consumers."

Chairperson Juan noted that the power sector today differs fundamentally from 20 years ago, highlighting the rapid entry of Variable Renewable Energy (VRE) and energy storage systems. Managing these grid assets efficiently, along with exploring long-term baseload options like nuclear power, will be vital to reducing reliance on imported fuels and securing affordable, reliable electricity.

PEMC reaffirmed its commitment as WESM’s governance arm to align with regulatory directions, strengthen market monitoring, and support policies that prioritize consumer protection and market sustainability.

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