The average price at the Wholesale Electricity Spot Market (WESM) fell by 35% month-on-month in the first three weeks of September to Php3.10 per kilowatt-hour (kWh) on the back improved power supply.
John Paul Grayda, Manager for Market Simulation and Analysis at the Independent Electricity Market Operator of the Philippines (IEMOP), particularly attributed the development to a supply margin increase.
IEMOP particularly reported that the rate for this month’s billing period covered from September 1-21.
WESM’s operator said it expects prices to further go down this month given sufficient supply mostly from coal-fired power plants, as well as a decrease in average demand, which was 9,824 megawatts (MW) as of September 21.
IEMOP likewise said that the effective settlement spot price went down to Php5.13/kWh in August from Php7.12/kWh previously, with colder weather conditions setting in. Total spot percentage also lessened for this period to 8.6% from 9.6%. The generation for spot transactions in August was recorded at 6,989 gigawatt hours.
However, IEMOP said system peak demand increased to 12,481MW in September from 12,272MW the month prior.
IEMOP COO Engr. Robinson Descanzo said the simulations indicate sufficient power supply during the Malampaya gas field’s maintenance shutdown from October 2-22.