The average system-wide prices at the Wholesale Electricity Spot Market (WESM) will likely stay at P3.90 per kilowatt-hour (kWh) for the December billing month, an official said Thursday.
Data from the Independent Electricity Market Operator of the Philippines (IEMOP), the operator of the spot market, showed that the average system-wide electricity prices declined by P0.22 per kWh as of Nov. 26 to Dec. 10 to P3.90 per kWh from P4.12 per kWh in November.
“The price is going down. This December, P3.90 will be the price towards the end of this year,” IEMOP trading operations head Isidro Cacho said.
“January will still be a cool month so we expect the prices to be the same as December, but for February and so on, we will have to see [because] towards February, the trend of demand tends to pick up,” Cacho said.
He said the available supply went up, but demand declined, with stiff competition likely a factor in the movement.
System-wide demand was at 13,032 MW as of Dec. 10, against available supply of 14,912 MW, equivalent to a supply margin of 4,334 MW.
IEMOP said the Luzon region saw an average price decrease of P0.11 per kWh; Visayas, P0.52 per kWh; and Mindanao, P0.50 per kWh.
It said the market experienced a reduction in electricity demand coupled with improvements in supply levels translating into lower electricity prices for December.
“Lower clearing prices during this period can be attributed to the combination of lower offer prices from generator participants, potentially influenced by the decline in global fuel prices,” IEMOP said.
“Additionally, supply improved as generating plants completed their annual maintenance program together with notable higher supply availability from wind power plants which is mainly prompted by the Amihan season, contributed significantly to this scenario,” it said.