ELECTRICITY prices at the Wholesale Electricity Spot Market (WESM) rose in October due to an increase in demand with the approach of the year-end holidays, the Independent Electricity Market Operator of the Philippines (IEMOP) said.
The national average, however, masked much higher rises in spot prices for the smaller Visayas and Mindanao markets.
At a virtual briefing on Tuesday, Chris Warren C. Manalo, assistant manager for market simulation and analysis trading operations at IEMOP, said that demand increased slightly while supply declined due to a number of planned and forced plant outages.
According to preliminary data from IEMOP, WESM prices rose 13.1% month on month to P4.39 per kilowatt-hour (kWh).
“This increase is attributed to a minimal rise in system demand, driven by activities for the upcoming Christmas season,” the operator said.
The operator said available power declined 2.2% to 19,897 megawatts (MW). Demand during the period rose 2% to 13,972 MW.
In Luzon, spot prices rose 2.4% month on month to P3.89 per kWh.
Supply on the grid fell 2.4% to 13,979 MW. Demand, on the other hand, rose 1.7% to 9,915 MW.
The average electricity rate in the Visayas jumped 30.1% to P5.93 per kWh.
Supply increased 5.2% to 2,510 MW. Demand during the period rose 2.5% to 2,003 MW.
Mindanao WESM prices rose 49.3% from a month earlier to P5.20 per kWh.
Supply dropped 6.2% to 3,408 MW, while demand rose 2.8% to 2,054 MW.
“Lower WESM average price is expected with a stable supply and improved demand situation as the colder months approach,” IEMOP said.
IEMOP operates the WESM, where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera