Prices at the Wholesale Electricity Spot Market fell 31 percent in the September billing period to P2.86 per kilowatt-hour from P4.17 kWh in August.
Philippine Electricity Market Corp., operator of WESM which acts as the country’s trading floor of electricity, said the decrease in effective settlement spot prices was brought about by higher supply of electricity in September.
Effective settlement spot prices refer to the average prices paid by customers for energy bought from the spot market.
“The September billing period showed a marked increase in the share of electricity bought in the spot market compared to the monthly average of 8 to 10 percent sourced by wholesale customers. WESM truly works as it provides a viable option for wholesale customers in the provision of electric supply to end-users,” said PEMC president Melinda Ocampo.
WESM data showed that coal remained the dominant fuel in the generation mix at 49.33 percent in September while emerging renewable energy technologies such as solar, wind, run-of river hydro and biomass contributed 3.7 percent.
Coal prices, however, were on an upward trend recently which could cause electricity prices to go up in the next billing period. The peso depreciation will also likely impact on rates, according to industry players.
PEMC said settlement data showed that about 15.09 percent of total market transactions were sourced from the electricity market while the remaining 84.91 percent were procured through power supply agreements.