The average price of electricity sold in the Wholesale Electricity Spot Market (WESM) decreased by 3.9 percent nationwide in June, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
A combination of easing demand and a slight decline in supply sent WESM prices nationwide sliding, IEMOP said on Thursday.
Data provided by IEMOP showed that the average price per kilowatt-hour (kWh) amounted to P3.86 in June, compared to P4.01 per kWh in May.
Total average demand decreased by 4.1 percent to 14,545 megawatts (MW) from 15,169 MW, while the average supply dropped 3.5 percent to 21,432 MW from 22,218 MW.
Meanwhile, the price per kWh in Luzon averaged P3.91 per kWh, representing a 7.5 percent drop from May’s P4.23 per kWh.
Average demand in the region decreased by 5.4 percent in June to 10,400 MW from the previous month’s 10,993 MW, while average supply went down by 3.5 percent to 15,076 MW from 15,620 MW.
In the Visayas, the average WESM price for the period rose to P3.93, a 4.3 percent increase from May’s P3.71 per kWh. This occurred despite a 2.2 percent drop in demand, from 2,078 MW to 2,033 MW, and a 1.1 percent downward adjustment in power supply, from 2,664 MW to 2,635 MW.
Meanwhile, the average WESM price in the Mindanao grid also experienced a 13.2 percent increase for the period, rising to P3.54 from P3.11 per kWh in May. The demand inched up by 0.7 percent to 2,112 MW from 2,098 MW, while the available power supply fell 5.4 percent to 3,721 MW from 3,934 MW.
The data cited by IEMOP did not count an entire month as the billing period, given that it ends on the 25th day of each month.
Moreover, WESM prices do not automatically translate to power rate reductions for end customers. Other factors come into play, such as generation rates or the total cost of electricity purchased by distribution utilities and electric cooperatives, the supply from power agreements, and the supply from independent power producers.
