Consumers may see relief in their electricity bills as the Independent Electricity Market Operator of the Philippines (IEMOP) projects continued low prices at the Wholesale Electricity Spot Market (WESM), driven by ample power supply and the expanding presence of renewable energy sources.
According to IEMOP head of trading operations Isidro Cacho Jr., spot market rates are expected to remain within the P4 to P5 per kilowatt-hour (kWh) range this month of May—similar or even slightly lower than last month’s levels. In a virtual briefing, Cacho said sufficient energy supply has helped stabilize prices and likely help keep rates low through the year.
This follows a 15.3 percent drop in average WESM prices in April, attributed to improved supply conditions despite rising demand. IEMOP projects sustained stability as more renewable energy (RE) projects come online and scheduled maintenance for power plants proceed as planned.
Power distributor Manila Electric Co. (Meralco) echoed the positive outlook, noting that lower WESM prices in April are likely to bring down the generation and transmission charges in May. Meralco vice president Joe Zaldarriaga said that increased capacity due to returning power plants and falling reserve market charges could reduce overall power rates.
A rate drop would offer welcome relief to both households and businesses after Meralco’s P0.7226 per kWh hike in April, which raised average residential bills by P145 for 200 kWh of consumption.
