The Independent Electricity Market Operator of the Philippines which runs the Wholesale Electricity Spot Market (WESM) said Tuesday electricity prices in Luzon declined in the first two weeks of September by P1.41 per kilowatt-hour.
“This decline is primarily attributed to ample supply margins and tamer demand compared to the summer months,” IEMOP head of trading operations Isidro Cacho said.
Cacho said if there would be no major outages and the current supply and demand scenario continues amid cooler weather, “then we expect the prices to be sustained at the current level if not lower, hopefully that will prevail.”
He said WESM data showed that the average demand in Luzon dropped by 361 megawatts to 9,119 MW from 9,480 MW, leading to a decrease in spot market prices to P4.12 per kWh in September from P5.53 per kWh in August.
Power supply in Luzon reached 13,394 MW during the period, with reserve margins at 3,845 MW. The Visayas grid also witnessed a decrease in average demand to 1,850 MW from 1,872 MW.