Reserve market may drive June power hike –DOE
- June 7, 2025
- 0
The Department of Energy (DOE) has indicated a possible increase in the transmission charge for the June 2025 billing period, citing early data that points to higher reserve
The Department of Energy (DOE) has indicated a possible increase in the transmission charge for the June 2025 billing period, citing early data that points to higher reserve
The Department of Energy (DOE) has indicated a possible increase in the transmission charge for the June 2025 billing period, citing early data that points to higher reserve market prices in May compared to the previous month.
“Initial information shows a possibility of an increase in the transmission charge due to a possible uptick in reserve market prices for the May supply month in comparison with the previous month based on publicly available data,” the DOE stated.
Reserve market prices directly impact ancillary service charges from the transmission grid operator, which are passed on to consumers.
On the generation side, the DOE said it expects rates to hold steady in June: “We hope it remains flattish and that there will be no significant movement for the June billing month following the significant decrease last May.”
Any upward adjustment in generation costs could potentially be offset by more favorable market conditions. “Should there be any increase, we hope that this could be mitigated by lower prices from the Wholesale Electricity Spot Market (WESM) as announced by the spot market operator,” the agency added.
The DOE also noted that the ongoing implementation of the PHP 19.96 billion refund approved by the Energy Regulatory Commission (ERC) could provide some relief. “We also hope that the continued implementation of the P19.96 billion refund… will help mitigate possible increases in power bill components.”
What’s your take on the DOE’s projections? Are reserve market fluctuations driving long-term volatility in transmission charges? Join the discussion.
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