Visayas and Mindanao face power emergency calls and new price caps

The Visayas and Mindanao regions in the Philippines are facing significant power supply challenges, leading to rotational brownouts and calls for government intervention. The Regional Development Council of Western Visayas has urged the Office of the President and the Department of Energy to declare a state of power emergency across the entire Visayas to expedite permits for short-term solutions like battery energy storage systems and power barges.

To mitigate high costs during supply shortages, the Department of Energy (DOE) has endorsed the Energy Regulatory Commission’s (ERC) move to implement a regional Secondary Price Cap (SPC). This mechanism prevents lower prices in Luzon from artificially lowering the national average, which previously prevented price protections in the Visayas and Mindanao. Simulations suggest this regional cap could have reduced August average Wholesale Electricity Spot Market (WESM) prices in the Visayas by 54% and in Mindanao by 56%.

The Independent Electricity Market Operator of the Philippines (IEMOP) has been ordered to recalculate August 2026 market settlements, with revised bills expected by September 20. Meanwhile, officials are also pushing for faster interconnection between the Visayas and Luzon grids to address long-term stability.