Increased power supply cuts average power price in WESM

Driven by an increased power supply availability despite rising demand, the average price of electricity in the Wholesale Electricity Spot Market (WESM) declined in August, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

Based on the latest IEMOP data as of 25 August, the average price per kilowatt-hour (kWh) in the WESM across the country stood at P5.94, a slight drop of 0.4 percent compared to July’s full-month average of P5.97 per kWh.

Significant rise

The data showed that the decrease in prices was driven by a significant rise in power supply, which offset the 1.4 percent increase in nationwide demand.

Average electricity demand for the period rose to 14,186 megawatts (MW), up from 13,989 MW in July, while the average supply grew by 4.5 percent to 19,718 MW, compared to 18,867 MW.

Wider supply margin

“Despite the increase in demand, available supply is higher for this specific billing period. Hence, there is a wider supply margin, mainly because hydropower plants’ contribution has increased from 6.7 percent to 10 percent,” IEMOP said in a statement.

Regionally, the Luzon grid saw an average WESM price of P6.24 per kWh, a 5.5 percent rise from July’s P5.92 per kWh.

In contrast, the Visayas grid experienced a 7.6 percent decrease, dropping prices from P7.50 per kWh in July to P6.93 per kWh in August. Mindanao recorded the largest decline, with prices falling by 27.8 percent from P4.67 per kWh in July to P3.37 per kWh.

Notably, IEMOP said figures for August are still preliminary and may change as the full-month data becomes available.