The nationwide average electricity rate in the Wholesale Electricity Spot Market (WESM) rose by 3.4 percent in July, reaching P3.99 per kilowatt-hour (kWh) from P3.86/kWh in June, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
This increase, attributed to reduced power supply caused by scheduled and unplanned outages, carries implications for both corporate energy costs and household electricity bills. Many power plants deferred maintenance during the summer and are now undergoing servicing, driving supply tightness.
Despite a 5 percent drop in overall demand, average supply across the country decreased by 3.2 percent, heightening the market price. IEMOP’s trading operations head Isidro Cacho Jr. noted that July’s price uptick reflects postponed maintenance from earlier peak months.
Regional breakdowns show variable impact:
- Luzon: Slight 0.3 percent price increase to P3.92/kWh, with demand down 6.6 percent.
- Visayas: Sharp 11.7 percent jump to P4.39/kWh, driven by a 3.9 percent supply dip.
- Mindanao: Rates climbed 7.3 percentto P3.80/kWh, despite minimal changes in demand and supply.
The uptick is expected to impact business operations with high energy use, particularly in manufacturing and services, while households may feel the pinch in their upcoming billing cycles. IEMOP’s data covers the billing period ending July 25.
