Philippines halts electricity sales amid Middle East conflict

Philippine authorities announced on March 26 that spot electricity sales will be suspended until further notice due to fuel supply risks and price volatility caused by the ongoing war in Iran, Reuters reports.

The suspension was ordered under a national emergency directive for the energy sector, aimed at mitigating the conflict’s impact, including potential fuel shortages.

The Energy Regulatory Commission (ERC) said it plans to finalise a revised pricing scheme by April  1. The move follows earlier plans outlined by Energy Secretary Sharon Garin, who told Reuters that the government would intervene in the market to prevent a forecasted 16% increase in electricity tariffs.

The ERC noted that historical market prices no longer “reflect current conditions marked by geopolitical tensions and fuel supply constraints.” During the suspension, the country’s energy system will operate with a focus on prioritising renewable energy and preserving critical fuel reserves.

Under the revised scheme, coal-fired power plants may receive a fixed rate, while gas-fired plants will be paid according to contractual prices.

The suspension will remain in effect until conditions allow for the safe resumption of normal market operations.