THE Energy Regulatory Commission (ERC) is soliciting comments from industry stakeholders to set the offer price ceiling for the electricity Reserve Market (RM) to P9 per kilowatt hour (kWh) from P25 per kWh.
The proposed adjustment is a mitigating measure to maintain a fair, transparent, and competitive trading environment. If approved, this pricing mechanism will stay in place until the market achieves enough maturity, liquidity, and competition to justify a framework review.
‘The ERC shall initiate a review of the offer price cap every five years from the completion of the immediately preceding review, or at such other time as the ERC may deem necessary,’ the draft resolution stated.
When sought for comment, ERC chairperson Francis Saturnino Juan said the proposed adjustment is intended to encourage greater participation in Ancillary Services Procurement Agreements (ASPAs), which provide a more stable and predictable alternative to reserve market procurement.
‘A lower ceiling price narrows the gap between market exposure and long-term contracted rates, giving generators stronger incentive to enter into ASPAs.
Wider ASPA coverage, in turn, reduces the system’s reliance on high-priced reserve market transactions and supports more stable, lower reserve prices for consumers,’ said Juan.
AS rates cover the pass-through costs of services sourced from the RM and from providers with bilateral contracts with the system operator to stabilize the grid during power supply-demand imbalances.
A public hearing is set next month.
Meanwhile, the agency has significantly reduced processing times for key permits through the Energy Virtual One-Stop Shop (EVOSS) system, supporting the government’s push to streamline approvals and accelerate energy project implementation.
During the 24th EVOSS steering committee meeting held early this month, the Department of Energy (DOE) reported that three ERC processes integrated into the portal are now completed faster than the timelines prescribed timelines under the 2020 Citizen’s Charter.
These include the authority to develop and operate point-to-point (P2P) limited transmission facilities, approval of Capital Expenditures (Capex), and issuance of Certificates of Compliance (COCs).
Data shows that P2P applications are processed in an average of 144.46 calendar days-significantly faster than the 270-day standard-while Capex approvals average 140.53 days against the same benchmark.
Additionally, COC applications are completed in just 29.65 days, well below the prescribed 60 days.
According to ERC data as of July 2026, a total of 646 applications have been filed through the EVOSS platform, covering all submissions whether approved or denied. This total includes 104 P2P applications, 68 Capex filings, 143 COC applications, and 331 Provisional Authority to Operate (PAO) requests.
‘Through EVOSS, we are able to speed up our processes without compromising thorough review. Our goal is to make project approvals more efficient and predictable to support a reliable and adequate power supply,’ said Juan.
Established under Republic Act No. 11234, the EVOSS system is a centralized, web-based platform that streamlines permitting processes for power generation, transmission, and distribution projects.