The price of electricity at the Wholesale Electricity Spot Market (WESM) in April increased has increased, based on initial estimates made by the Independent Electricity Market Operator of the Philippines (IEMOP).
According to the IEMOP, the price of electricity during the month average P6.90 per kilowatt-hour or 24.8 percent higher than in March when this averaged only P5.53 per kilowatt-hour.
Electricity demand across the country increased 8.9 percent to 14.376 megawatts during the month from only 13,206 MW a month earlier. During this period, average supply increased 1.4 percent to 19,210 MW from 18,948 MW resulting to a power margin 25 percent lower to only 2,869 MW from 3,827 MW, the IEMOP said.
The privately-run company said 19.68 percent of trading intervals in April were subject to the secondary price cap (SPC), a price mitigation mechanism, compared to only 7.04 percent in March. The SPC protects consumers from unreasonable price increase but at the same time ensures the business remains profitable for investors.
It serves as consumer protection from unwarranted increases in electricity prices due to the inherent volatile market price movements at the WESM by lowering the clearing price of electricity to P6.245 per kWh when the average price breaches the threshold of P9 per kWh over a 72-hour period, officials explained.
As of 25 April, the average price per kWh at the WESM in Luzon is P6.63 per kWh or 24.2 percent higher than in March when this averaged only P5.34 per kWh. WESM Visayas reported electricity prices averaging P8.73 which or 36.8 percent more than in March of only P6.38 per kWh.
Over in Mindanao, WESM prices per kWh average P6.43, higher by 52.7 percent in March of only P4.21 per kWh.
These are preliminary numbers for April that can still change.
Earlier, the Manila Electric Co. (Meralco) warned the cost of electricity in Metro Manila in May would likely increase due to higher generation charge as the cost of electricity at the WESM went up due to tight supply conditions and as power demand surged in keeping with the rise in the heat index.
Last month, Meralco implemented a P0.9879 per kWh decrease in its rates mainly driven by sharp decreases in both generation and transmission charges.
Last month’s adjustment was equivalent to a decrease of around P198 in the bill of a residential customer consuming 200 kWh monthly and brought overall power rates to P10.9518 per kWh from the previous P 11.9397 per kWh.
