Average price of electricity in the wholesale electricity spot market (WESM) in Luzon and Visayas for July billing month increased by almost 5 percent to P8.92 per kilowatt hour (kWh) from last month’s P8.51 per kwh, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
IEMOP said the increase was mainly due to decreased supply availability for the month.
For the month of July, average power supply available in WESM hit 14,701 megawatts (MW), over 3 percent lower from June’s 15,214 MW.
IEMOP said average demand for the period also went down by almost 5 percent to 10,785 MW from 11,325 MW.
IEMOP said the lower demand was mainly brought by cooler weather conditions due to intermittent rains and thunderstorms as well as with tripping of some loads in areas affected by the magnitude 7 earthquake in Abra.
IEMOP observed a significant decline in market prices for the first few days of August billing month covering the last week of July and the first few days of August.
For the period, the firm said average price is at P6.84 per kWh attributable to a higher supply margin, averaging at 4,868 MW, much higher compared to the past two months, as well as lower market clearing prices possibly due to the easing coal prices in the global market.
However, IEMOP could not say if this will be sustained for the entire month especially with the expected return of on-site school classes, among other factors.
The figures collated by IEMOP only reflect the situation in the Luzon and Visayas grids as Mindanao is not yet fully connected to the WESM. – Jed Macapagal
