Electricity prices at the Wholesale Electricity Spot Market (WESM) rose by 30.6 percent in April, reaching an average of P5.36 per kilowatt-hour from P4.31 in March, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
IEMOP said the increase was caused by higher electricity demand and rising fuel costs linked to the conflict in the Middle East. Power demand nationwide climbed 7.6 percent, while supply grew at a slower pace of 4.6 percent.
Despite the increase, IEMOP said prices could have surged to as high as P9 to P10 per kWh if regulators had not temporarily suspended WESM operations and introduced modified pricing rules last month.
Luzon recorded the biggest increase, with average prices rising 37.1 percent to P5.63 per kWh. Prices also increased in the Visayas and Mindanao grids.
For businesses, higher WESM prices may lead to increased operating costs, especially for factories, malls, and other energy-intensive industries. Households could also face higher electricity bills if power distributors pass on the added generation costs to consumers.
IEMOP said the regulator’s intervention helped prevent more extreme price spikes and reduced market volatility during the fuel price surge.
