Average electricity prices across the Philippines in the Wholesale Electricity Spot Market (WESM) climbed 11.8 percent in August, driven by steep cost surges in Visayas and Mindanao even as Luzon rates fell, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed Wednesday.
The national average hit P9.29 per kilowatt-hour (kWh) in the period ending August 25, up from P8.31 per kWh in July. This change carries direct weight for businesses and households, as utilities and electric cooperatives pass on WESM costs based on how much power they source from the spot market.
The most dramatic increases occurred in Visayas and Mindanao, where tight supply pushed prices sharply higher. Mindanao’s average rate jumped 88.2 percent to P19.56 per kWh from July’s P10.39 per kWh, while Visayas recorded a 64.9-percent rise to P18.59 per kWh from P11.29 per kWh. In stark contrast, Luzon’s average price dropped 34.2 percent to P4.80 per kWh from P7.30 per kWh over the same period.
These price shifts align with key supply and demand movements. Nationwide, total power demand fell 6.7 percent to 13,939 megawatts (MW), while available supply also decreased by 4.1 percent to 19,739 MW. Regional data reveals the underlying strains behind these trends: Visayas saw a slight 0.7-percent demand increase to 2,094 MW alongside a 2.6-percent supply drop to 2,201 MW, leaving almost no buffer and forcing reliance on costlier generation and imports from other islands. Mindanao faced greater pressure with a 5-percent demand rise to 2,195 MW and a 7.3-percent decline in available supply to 3,045 MW. Meanwhile, Luzon’s more balanced conditions included a 10.4-percent demand drop to 9,650 MW and a modest 3.7-percent supply decrease to 14,493 MW, supporting lower rates in the region.
IEMOP vice president for trading operations Isidro Cacho Jr. emphasized that Visayas operates with almost no supply margin, and local scarcity compels the use of more expensive power plants—a challenge affecting both Visayas and Mindanao. For consumers, impacts differ significantly: Luzon customers will see little effect or even relief, while Visayas and Mindanao households and businesses face heavier cost burdens due to higher spot market exposure, which can reach up to 30 percent for some utilities. IEMOP’s data reflects the billing cycle ending on the 25th of each month, not the full calendar month.
