Power spot market prices significantly up in October

MANILA, Philippines — Average electricity spot market prices for Luzon and the Visayas rose significantly in the first half of October due to reduced supply margins.

Data from the the Independent Electricity Market Operator of the Philippines (IEMOP) showed average wholesale electricity spot market (WESM) prices in Luzon increased to P7.58 per kilowatt-hour (kWh) as of Oct. 15 from only P4.87 per kWh last month.

Luzon’s average supply for the 15-day period stood at 12,150 megawatts (MW), down from September’s 13,307 MW, while average demand grew to 9,638 MW from the previous month’s 9,377 MW.

There was also a recorded rise in WESM rates in Visayas at P8.49 per kWh in the first half of October from P6.36 per kWh in the full month of September.

Average demand in Visayas during the period grew to 1,884 MW from September’s 1,846 MW, while average supply slightly improved month-on-month to 2,309 MW.

WESM rates in Mindanao, meanwhile, have declined to P4.96 per kWh as of Oct. 15 from last month’s P5.71 per kWh.

During the period, IEMOP said a slight increase in average demand was observed for all the grids as the country moves closer to Christmas season.

It said supply levels were further affected by plant outages resulting in lower supply margins during the first half of October.

Luzon’s WESM rate decreased by 12 percent month-on-month in September at P4.87 kWh due to improved supply.

In contrast, Visayas and Mindanao had WESM rates of P6.36 per kWh and P5.71 per kWh in September, representing increases of 2.76 percent and 18.53 percent, respectively, from August.

The WESM is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are determined based on actual use and availability.

It began commercial operations in Luzon in June 2006, the Visayas in December 2010, and in Mindanaoin January 2023.