By JED MACAPAGAL
The initial average price of electricity in the wholesale electricity spot market (WESM) in Luzon and Visayas increased for December, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
IEMOP said in an online briefing yesterday the increase was mainly due to higher average power demand amid lower available average capacity.
As of December 11, average price per kilowatt hour (kWh) in the WESM is at P9.12, 6.9 percent higher from full month of November’s P8.53 per kWh.
IEMOP added average demand for the period also went up by 1.3 percent to 10,499 megawatts (MW) from 10,355 MW.
Average supply for the period dropped by 8 percent to 12,534 MW from 13,691 MW.
The December figures presented by the firm are initial data and can still change depending on the full-month development.
Overall, electricity demand for 2022 saw a normalcy in terms of growth compared to levels recorded in 2020 and 2021 during the pandemic, IEMOP said.
The firm said on average, power demand this year grew by 3.6 percent at 10,457 MW against 2019 levels of 10,088 MW, as peak demand went up by 8 percent to 14,380 MW from the recorded peak demand in 2019 at 13,450 MW.
IEMOP did not provide details but said WESM prices for 2022 also recorded a significant increase due to soaring prices of imported fuel in the global market.
Volumes presented by IEMOP only reflect the situation in the Luzon and Visayas grids.
Meanwhile, the Philippine Rural Electric Cooperatives Association (Philreca) said it supports the Energy Regulatory Commission’s initiative to conduct a nationwide investigation of all private utilities and electric cooperatives (ECs) and their power suppliers to address overpriced generation rates.
In a position paper, Philreca said member ECs have been pushing for such move and have tried to talk to generation companies in the past to insist on renegotiation of their rates.
The group added ECs “are being vilified, crucified and even tried in the court of public opinion” for levying rising electricity rates in recent months despite playing only as collecting agents for other power related charges.
“The only fees that the ECs have control of – the distribution, supply and metering charges, remained unchanged and did not change since the last ten years. It did not change and we never intended for it to increase,” Philreca said.
