Average electricity prices at the Wholesale Electricity Spot Market are expected to remain stable at around P4 per kilowatt-hour for the remaining months of the year due to cooler temperatures and the availability of power plants.
Independent Electricity Market Operator of the Philippines (IEMOP) data showed that the average price for October went up to P4.39 per kWh, higher than P3.88 per kWh average price in September.
System-wide average power supply declined to 19,897 megawatts last month from 20,384 MW in September, while demand went up to 13,972 MW from 13,700 MW. This resulted in lower supply margins to 3,835 MW from 4,614 MW.
IEMOP assistant manager for market simulation and analysis Chris Warren Manalo said they forecast the same price level for November to December if the demand and supply scenario continues at the same level as October.
“Especially if weather continues to be colder and demand roughly 13,900 MW with the same conditions and if there will be improvement in terms of supply, so price will stable at around P4,” Manalo said.
IEMOP, operator of the WESM, the trading floor of electricity, expects lower WESM average price with a stable supply and improved demand situation as the colder months approach.
Manalo attributed the system-wide price increase to the minimal rise in system demand, driven by activities for the upcoming Christmas season.
Luzon’s average price posted a minimal increase in October to P3.89 per kWh from P3.80 per kWh. Luzon’s average demand went up to 9,915 MW from 9,746 MW, while average supply declined to 13,979 MW from 14,327 MW.
Average prices in Visayas and Mindanao rose from P4.56 and P3.48 per kWh to P5.93 and P5.20 per kWh, respectively.
