The average price of electricity sold on the Wholesale Electricity Spot Market (WESM) declined by 11.2 percent nationwide in May, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed.
Based on data released by IEMOP on Tuesday, the price drop was attributed to higher power supply during the period, despite increased demand.
IEMOP said the average price per kilowatt-hour (kWh) on WESM for the entire Philippines as of May 25 was P4.01, compared with P4.52 per kWh in April.
Historically, lower spot prices have pulled down the monthly power rates charged by Meralco. However, the WESM is not the sole indicator of electricity consumer prices, since other factors, such as generation and transmission charges, also come into play, an expert said.
IEMOP’s data showed that total average demand in the country for the period grew 2.9 percent to 15,169 megawatts (MW) from 14,739 MW, while average supply rose by 4.1 percent to 22,218 MW from 21,345 MW.
Meanwhile, the average price per kWh on WESM for Luzon in May reached P4.23 per kWh, a 7.9 percent drop from April’s P4.59 per kWh. Average demand in the region climbed 3.6 percent in May to 10,993 MW from the previous month’s 10,613 MW, while average supply grew by 4.1 percent to 15,620 MW from 15,000 MW.
As for Visayas, the average WESM price for the period was P3.71, representing a 17.9 percent fall from April’s P4.52 per kWh. This decline was accompanied by a 3.5 percent increase in demand, rising to 2,078 MW from 2,009 MW, and a 4 percent rise in power supply in the region, reaching 2,664 MW from 2,563 MW.
The average WESM price in the Mindanao grid decreased by 24.3 percent for the period, from P4.11 in April to P3.11 per kWh, as demand fell by 0.9 percent to 2,098 MW from 2,118 MW. The available power supply increased by 4 percent to 3,934 MW, up from 3,782 MW.
The IEMOP data does not count an entire month as the billing period from WESM, which ends on the 25th day of each month.
Arjon Valencia, IEMOP corporate planning and communications manager, said that for May 2025’s system-wide total generation mix, coal’s share remained the largest at 59.9 percent, followed by renewable energy at 22 percent. Natural gas accounted for a 17 percent share, while oil-based generation had a 0.4 percent share.
