Electricity prices in the Wholesale Electricity Spot Market (WESM) dropped in June as supply remained stable and demand declined with the onset of the rainy season.

Latest data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed that the average system-wide market price fell to P3.86 per kilowatt-hour (/kWh), down from P4.02/kWh in May.

"The price trend from May to June 2025 showed a decline mainly due to stable supply margin levels," IEMOP said in its market report on Thursday.

Supply in June reached 21,432 megawatts (MW), a 3.5 percent decrease from the previous month, while demand dropped by 4.1 percent to 14,545 MW.

Despite the overall price dip, regional variations were observed. Prices declined in Luzon, but rose in the Visayas and Mindanao. In Mindanao, the increase was driven by a mismatch between lower supply and higher demand.

Two market interventions during the billing period were also recorded and subjected to administered pricing.

IEMOP also reported changes in the generation mix. Renewable energy accounted for 21.6 percent of the total, while coal’s share dropped from 59.9 percent to 57.5 percent. Natural gas increased its contribution to 19 percent from 17 percent, while solar dipped to 3.8 percent from 4.6 percent. Hydro slightly rose to 7.8 percent.

In the retail market, purchases covered 21 percent or 2.29 terawatt-hours of total customer transactions, slightly higher than the previous month. The Effective Spot Settlement Price fell to P4.05/kWh from P4.13/kWh. 

Meanwhile, spot market volumes declined, accounting for 18.6 percent of total traded quantities, down from 19.4 percent. Total trading value also dropped from P13.55 billion to P12.50 billion.