The Independent Electricity Market Operator of the Philippines (IEMOP) reported higher electricity prices in October 2025 as demand increased and several power plants and transmission lines went offline due to typhoons and earthquakes.

During its monthly market operations briefing, IEMOP said the Wholesale Electricity Spot Market (WESM) recorded an average price of PHP 4.54 per kilowatt-hour, up by 49% from September’s PHP 3.04 per kWh. Average demand rose 1.8 % to 13,881 megawatts, while available supply dropped 4% to 19,889 megawatts.

In regional terms, Luzon prices averaged PHP 3.96 per kWh, Visayas PHP 5.85, and Mindanao PHP 5.87. IEMOP attributed the increase to forced outages, HVDC transmission congestion, and weather disturbances, including earthquakes in the Visayas and Davao as well as several typhoons that led to temporary market interventions.

Engr. Isidro E. Cacho, Jr., IEMOP Vice President for Trading Operations, said the October price movement was seasonal and remained below summer-month levels. “Historically, demand rises in October before tapering off in the cooler months. We expect prices to stabilize toward November and December, barring any major unplanned outages,” he said.

The generation mix for the month was led by coal at 56.5%, followed by renewables at 26%, natural gas at 16%, and hydro at 12.7%. Solar and wind generation continued to grow, reaching 4% and 0.8% shares, respectively.

Market data showed that spot settlement prices climbed to PHP 5.12 per kWh, while the total trading value increased to PHP 14.09 billion from PHP 8.84 billion in September. Reserve-market transactions also rose to PHP 5.68 billion as additional capacity was called on during system disturbances.

Cacho added that the Energy Regulatory Commission’s secondary price cap—triggered at PHP 9 per kWh—was not imposed in October, since market prices stayed below the threshold.

IEMOP also confirmed readiness for the lowering of the Retail Competition and Open Access (RCOA) threshold to 100 kilowatts, which will allow more customers to directly choose their power suppliers. “This brings us closer to a more competitive electricity market that benefits consumers,” Cacho stated.

As of October, the renewable energy market had issued 54.43 million Renewable Energy Certificates (RECs). The preliminary 2024 REC statements are scheduled for November 17, with final issuances by January 13, 2026.

What measures can help ensure grid stability as demand continues to grow and extreme weather events become more frequent?

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