No WESM price spikes seen through 2025

MANILA, Philippines — Electricity rates in the country’s spot market are likely to remain stable for the rest of the year amid ample supply margins, according to the Independent Electricity Market Operator of the Philippines.

IEMOP trading operations head Isidro Cacho Jr. is not seeing “significant” price increases in the Wholesale Electricity Spot Market (WESM) despite scheduled maintenance of some conventional plants in the third quarter.

“We hope to see a stable supply margin for the rest of the year. If it (price) rises, it will likely be around P4 or P5 due to the ample margin we’re seeing in the market,” Cacho told reporters over the weekend.

He is counting on the entry of 1,400 megawatts (MW) of gas capacity and a major surge in solar power integration, especially in the Luzon grid.

Unplanned outages of several power plants were said to have decreased this year, unlike in 2024, which saw at least 78 yellow and red alerts.

“Because of this, you can also see the effect on prices, which are definitely lower this year compared to last, and we are seeing the same trend,” Cacho said.

Last month, system-wide WESM rates declined for the third straight time due to lower demand driven by the onset of the rainy season.

The average spot price dipped by 3.9 percent to P3.86 per kilowatt-hour in June from the previous month’s P4.01 per kWh, IEMOP data showed.

Overall supply edged 3.5 percent lower to 21,432 MW from 22,218 MW on a monthly basis, while demand was down by 4.1 percent to 14,545 MW from 15,169 MW.

Operated by IEMOP, WESM is the centralized venue for buying and selling electricity as a commodity where prices are determined by supply and demand.

In another development, the Energy Regulatory Commission (ERC) is set to hold an inaugural open meeting on July 9 in line with efforts to ensure transparency on power rates and full public accountability.

“By allowing greater public access to our deliberations, we aim to heighten energy literacy and awareness of ERC’s rules and processes,” ERC chairperson and CEO Monalisa Dimalanta said yesterday.

“This fosters stronger public participation, better understanding of regulatory actions and an environment of fairness and inclusivity in the energy sector,” Dimalanta added.

In February last year, the regulator resolved to implement strategies to ensure the achievement of its targets, including conducting open commission meetings.