The Philippine Electricity Market Corp. (PEMC) said average cost of power in the wholesale electricity spot market (WESM) in the last three billing months has been on a downward trend.
PEMC, in a letter signed by its president Oscar Ala, told consumer group Laban Konsyumer Inc. that the main cause of the price drop was the availability of more power supply in the market paired with stable demand.
The WESM operator noted that for the July billing month, available supply was at 13,416 megawatts (MW) against a demand of 10,500 MW which led to a load weighted average price (LWAP) of P4.44 per kilowatt hour (kwh).
For the August billing month, available supply was at 13,624 MW against a demand of 10,115 MW which led to a LWAP of P2.92 per kwh. In the September billing month, available supply was at 14,788 MW against a demand of 10,006 MW which led to a LWAP of P1.90 per kwh.
“The WESM prices reflect the changing supply and demand situation depending on the season and time of the day. Electricity demand normally goes down during the colder season. When there is abundant supply and low demand, market prices would tend to be low, which was the case for the August and September 2019 billing months,” the letter further read.
Manila Electric Co. implemented five consecutive months of power rate rollbacks from May until September 2019 citing stable spot market prices as among the reasons for such movement.