The Independent Electricity Market Operator of the Philippines or IEMOP expects the relatively lower power prices at the Wholesale Electricity Spot Market or WESM to be carried over until the first month of 2024.

"Our average price for December is P3.90 per kilowatt-hour or kWh. Last month, it was P4.12 per kilowatt hour. Last October it was at P0.16 so the trend is down. This December, P3.19 will be almost the same until January," IEMOP Head of Trading Operations Engr. Isidro E. Cacho Jr. said during a press chat on Thursday.

"January will still be a cool month for us so we expect the prices to be almost the same in December. But February and so on, that's another thing let's look at because if indeed El Niño has an impact, that will start in February," he added.

WESM average price decrease

Based on market operational data as of 10 December, the WESM average price decreased by P0.22/kWh despite an 84-megawatt or MW increase in demand from the previous billing month.

The Luzon region saw a decrease of P0.11/kWh, Visayas by P0.52/kWh, and Mindanao by P0.5/kWh.

Lower clearing prices during this period may be attributed to a combination of factors, including lower offer prices from generator participants, which may have been influenced by the decline in global fuel prices.

Improved power supply availability due to completed annual maintenance programs in generating plants and higher supply from wind power plants during the Amihan season contributed significantly to the current scenario.

The IEMOP also reported that wind power generation in November increased greatly by 102 GWh, which is a 1.4 times surge compared to the previous month.

Coal, natural gas still dominant

Despite this increase, coal and natural gas still dominate the energy supply in Luzon, Visayas, and Mindanao, accounting for 76 percent of the total generation.

Geothermal and hydropower sources contributed 8.9 percent and 8.3 percent, respectively.