The average price of electricity at the Wholesale Electricity Spot Market (WESM) fell by 11.2 percent in May, potentially easing pressure on consumer bills, as higher power supply outpaced rising demand.

Based on the latest industry data from the Independent Electricity Market Operator of the Philippines (IEMOP), the average market price dropped to P4.01 per kilowatt-hour (kWh) as of May 25, down from P4.52/kWh in April.

Arjon Valencia, Corporate Planning and Communications manager at IEMOP, said system-wide supply increased by 4.1 percent to 22,218 megawatts (MW), while demand rose by 2.9 percent to 15,169 MW.

The improved supply-demand balance resulted in a wider margin of 4,945 MW, compared to 4,585 MW in the previous month.

Decline until May

“The price trend from April to May showed a decline, in contrast to the same period in 2024, where prices increased. This difference was due to a higher supply margin in May,” Valencia said.

Similar conditions were recorded in Luzon and Visayas, where both supply and demand increased but higher margins led to lower prices.

In Mindanao, electricity supply rose while demand declined, further contributing to lower market prices. No market interventions were reported during the billing period.

Retail market purchases made up 21 percent, or 2.17 TWh, of total transactions in May. The average spot price dropped to P4.13/kWh from P4.82/kWh in April.

Spot market volume also fell to 19.4 percent of total trades, while the total trading amount declined to P13.55 billion from P17.17 billion due to lower prices.

Coal remained the main power source in May at 59.9 percent, slightly up from April. Renewable energy made up 22 percent, while natural gas held steady at 17 percent. Hydro rose to 7.7 percent, while solar and oil-based sources dropped to 4.6 percent and 0.4 percent.