Electricity prices at the Wholesale Electricity Spot Market (WESM) saw a modest uptick in November as tighter supply-demand margins drove rates higher, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
Preliminary data from IEMOP showed that average WESM prices rose by 0.6% to PHP 4.42 per kilowatt-hour (kWh) during the billing period from Oct. 26 to Nov. 25.
Available power supply dropped by 2% to 19,492 megawatts (MW), while demand similarly declined by 2.2% to 13,659 MW.
Despite both supply and demand registering decreases, the narrower gap between the two was a key factor in the slight price increase.
“Although both the system supply and demand decreased this month, its margin remained a factor in the price’s slight increase as the supply margin for the November billing period is lower than October,” said Arjon B. Valencia, IEMOP’s corporate planning and communications manager.
Luzon, the country’s largest power grid, significantly influenced the system-wide price hike. In the region, WESM prices jumped by 8.9% to PHP 4.24 per kWh. Supply in Luzon fell by 2.4% to 13,645 MW, while demand dropped by 2.5% to 9,663 MW.
In contrast, the Visayas region experienced a notable decline in electricity spot prices, which fell by 18.6% to PHP 4.82 per kWh. This occurred as supply dipped by 4.6% to 2,394 MW and demand slipped by 1.6% to 1,971 MW.
Mindanao also recorded a 6.6% reduction in WESM prices, averaging PHP 4.85 per kWh. Unlike other regions, however, Mindanao’s supply increased by 1.3% to 3,453 MW, while demand slightly decreased by 1.2% to 2,030 MW.
The WESM, operated by IEMOP, provides a platform for energy companies to procure additional electricity when their contracted supply is insufficient to meet customer requirements.
The slight rise in prices underscores the volatility of electricity spot markets and the importance of maintaining stable supply-demand dynamics across the country’s grids.
