ERC sets IEMOP, PEMC market fees at ₧3.3B By Lenie Lectura
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HE Energy Regulatory Commission (ERC) has set the 2025 to 2027 market transaction fees (MTF) for Independent Electricity Market Operator of the Philippines (IEMOP), operator of the wholesale electricity spot market (WESM), and the Philippine Electricity Market Corp. (PEMC), the governing body of the spot market, at P3.307 billion. Market fees represent the cost of administering and operating the WESM. Of the total amount, IEMOP’s budget is P1,879,735,690.40 while PEMC’s share is at P1,427,101,813.11. The total indicative rate for both entities is P0.0071 per kilowatt hour (kWh) or P0.0040 per kWh for IEMOP and P0.0031 per kWh for PEMC. The amount will also fund their
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capital expenditures (capex), including critical IT and cybersecurity upgrades, and other operating expenses. Under Section 30 of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the cost of administering and operating the WESM is recoverable through the market fee to be approved by the ERC and collected from the power generators transacting in the WESM. The fees are being collected from all market participants, such as power generation companies (gencos), Power Sector Assets and Liabilities Management Corp. (PSALM), distribution utilities (DUs), and bulk end-user. Unlike recent years, the ERC has proactively approved a fixed market fee rate for the 2026-2027 fiscal cycle. This advance notice, the ERC said, facilitates superior budget planning and imple-
mentation by IEMOP and PEMC, resulting in greater operational efficiency. “The approved market fee ensures a reliable and transparent WESM. This provides cost predictability for generators and guarantees the integrity of WESM’s critical functions like pricing, settlement, and data reporting. The ERC’s decision also promotes price stability and reliable electricity delivery. By structuring the budgets of IEMOP and PEMC, the ERC ensures that fees are cost-reflective and that spending is prudent, upholding its commitment to consumer protection,” the ERC said. IEMOP President Robinson Descanzo said the ERC decision on a threeyear market fee will afford a predictable level and flexible use of budget to effectively sustain and improve market operations. “It will provide better certainty in
terms of availability of funds for intended programs and projects over a longer horizon, as well as greater degree of flexibility to align with the goals set under their respective strategic planning activities and be better equipped to face the challenges of a highly dynamic electricity market,” he said when sought for comment. He added that this will enable the market operator to implement a continuous maintenance plan, funded by the market fee, to ensure stable and high-performing market systems. “The three-year market fee is likewise beneficial to the stakeholders, as it enables them to consider such charge in their financial planning and promote efficiency in their operations, particularly on the aspect of spending, which will ultimately benefit the consumers,” the IEMOP official said.
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Tuesday, October 21, 2025 Vol. 21 No. 13
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
HE country’s balance of payments (BOP) posted a surplus in September, as modest inflows from the Bangko Sentral ng Pilipinas’s (BSP) income abroad and the national government’s foreign currency deposits narrowed the yearto-date deficit. Latest data released by the BSP showed the BOP, which accounts for the transactions of the coun-
try with the rest of the world, recorded a surplus of $82 million in See “Jitters,” A2
BIZ WANTS ‘MORE’ FROM PBBM IN FLOOD CONTROL FUND MESS By Andrea E. San Juan
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@andreasanjuan
T the rate things are going, the largest business group in the Philippines is not fully satisfied with President Ferdinand R. Marcos Jr.’s efforts to solve the flood control mess in the country. However, they strongly reject calls for him to resign, calling it a needless aggravation in an already dire situation. “We feel that we need more. And we need decisive actions and decisions. We don’t want cover-ups. We don’t want railroading. We
want really those responsible to be punished and to be identified, and the only person that can really do that by appointing those that are really into it and addressing it is our president,” Philippine Chamber of Commerce and Industry (PCCI) President Enunina Mangio told reporters on the sidelines of the 51st Philippine Business Conference and Expo on Monday in Pasay City. Mangio said this after over 30 business groups made an appeal to Marcos through a joint statement issued on Sunday to address, without delay, the corruption scandal “crippling” flood control and infrastructure See “Biz,” A2
VOTER REGISTRATION REOPENS Commission on Elections Chairman Erwin Garcia inspects the Special Register Anytime Anywhere booth at Luneta Park in Manila on Monday, October 20, 2025, as Comelec resumes voter registration for the upcoming Barangay Elections. The registration period runs until May 18, 2026, according to the Comelec. NONIE REYES
DPWH scuttles ‘allocable’ budget scheme By Lorenz S. Marasigan
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HONORING BARANGAY PEACEMAKERS Krista Gem M. Santos, Deputy Executive Director IV of the Office for Alternative Dispute Resolution; Dranyl Jared P. Amoroso, Senior Vice President for Advocacies of the Philippine Institute of Arbitrators Inc.; and Raoul C. Creencia, President of the Rotary Club of Manila, present the Provision of Barangay Justice award to the Lupong Tagapamayapa of Barangay Baan KM 3, Butuan City, represented by Punong Barangay Gemma P. Tabada, during the Leaders Excelling in Dispute Resolution and Peacemaking (LEAP) Awards held at the Manila Hotel. The annual recognition program honors exemplary practices in dispute resolution and peacemaking.NONIE REYES
HE Department of Public Works and Highways (DPWH) will completely abolish the so-called “allocable” and “non-allocable” budget formulas as part of a major overhaul aimed at making infrastructure spending “more transparent and responsive to actual community needs.” Public Works Secretary Vince Dizon told senators on Monday that the agency is “changing the entire process” by which infrastructure projects are planned and funded, beginning with the fiscal year 2027 budget cycle. “We are completely scrapping the formulas initially explained to the committees on finance and blue ribbon committee on allocable and non-allocable,” Dizon said. “We will simplify the formulas and process by which projects get to the NEP
[National Expenditure Program]. We will change that completely for 2027.” Under the current system, allocable funds are distributed to DPWH district engineering offices using a “parametric formula” to determine each district’s budget ceiling. Non-allocable funds, meanwhile, cover big-ticket projects outside district allocations—including foreign-assisted programs, right-ofway acquisitions, and equipment procurement. While designed to ensure equitable regional distribution, the formula-based approach has been criticized for being opaque and difficult to audit. Lawmakers have raised concerns about overlapping projects and questionable fund allocation, prompting the administration’s decision to scrap the system entirely. Dizon said the new budgeting process will ensure that “the planning and
budgetary process is clean and transparent and will reflect the needs of the districts, provinces, and regions.” The public works chief also acknowledged several “red flags” raised by Senator Win Gatchalian, who listed projects that were “duplicated” from the General Appropriations Act (GAA) of 2025 and the NEP of 2026. Gatchalian said he observed 6,187 red flag projects with a total cost of P271 billion. These include projects with “no station numbers, duplicates, multiple phases, and reappearing projects.” Dizon agreed that these should be removed, pending validation and confirmation. He noted, however, that in the future, it is “important to include a level of detail on the projects listed” in the future NEP. He noted that the budget reforms, which will be led by new Public Works Undersecretary Nick
Conti, “will not be quick and easy because we have a lot to fix.” This comes as the agency slashed its proposed NEP allocation by 29 percent to P625.78 billion for 2026, removing flood control projects from the proposal. Dizon added that the agency also removed duplicate and completed projects, eliminated overlapping road sections, and scrapped small or questionable allocations such as rock-netting, cat’s-eyes, and road stud installations. Beyond restructuring the budget process, Dizon said the agency will also review and standardize material costs—a move aimed at preventing overpricing and ensuring competitive procurement. “We are reviewing the cost of materials. We will publicize this in the coming weeks,” he said, adding that this problem has already been “decades long.”
PESO EXCHANGE RATES n US 58.1130 n JAPAN 0.3865 n UK 78.0632 n HK 7.4821 n CHINA 8.1531 n SINGAPORE 44.8610 n AUSTRALIA 37.7676 n EU 67.7598 n KOREA 0.0409 n SAUDI ARABIA 15.4955 Source: BSP (October 20, 2025)