Wholesale Electricity Spot Market (WESM) prices increased slightly in November as tighter supply-demand margins drove rates higher, the Independent Electricity Market Operator of the Philippines (IEMOP) said.
In a report by Business World, preliminary data from IEMOP revealed that average WESM prices increased by 0.6% month-on-month to Php 4.42 per kilowatt-hour (kWh).
From October 26 to November 25, available power supply dropped by 2% to 19,492 megawatts (MW), while demand also declined by 2.2% to 13,659 MW.
According to IEMOP Corporate Planning and Communications Manager Arjon B. Valencia, although both supply and demand decreased, the narrower margin between the two contributed to the slight rise in prices.
He noted that conditions in the Luzon grid were a key factor in the overall increase in system-wide prices.
In Luzon, WESM prices jumped by 8.9% to P4.24 per kWh as supply fell by 2.4% to 13,645 MW and demand dipped by 2.5% to 9,663 MW.
Meanwhile, in the Visayas region, spot market prices dropped by 18.6% to Php 4.82 per kWh as supply decreased by 4.6% to 2,394 MW and demand fell by 1.6% to 1,971 MW.
Mindanao saw a 6.6% reduction in spot prices, averaging Php 4.85 per kWh. Supply in the region increased by 1.3% to 3,453 MW, while demand slipped by 1.2% to 2,030 MW.
The WESM, operated by IEMOP, allows energy firms to purchase additional electricity when their contracted power supply falls short of customer requirements.
