Electricity prices at the Wholesale Electricity Spot Market (WESM) fell by 13.1 percent nationwide in July, driven by lower overall demand across the country. According to data released by the Independent Electricity Market Operator of the Philippines (IEMOP) during an online briefing, the national spot price dropped to an averaged P8.31 per kilowatt-hour (kWh) as of July 25, down from P9.56 per kWh in June.
The decline in spot market rates is expected to pull down consumer electricity bills for the current billing cycle. IEMOP vice president for trading operations Isidro Cacho Jr. noted that consumers, particularly those in the Visayas region, should see relief on their upcoming statements due to the significant rate drop and reduced exposure to high market prices compared to the previous month.
The lower nationwide rates were accompanied by a 3.4 percent decline in total demand, which fell to 14,936 megawatts (MW) from 15,455 MW in June. National power supply also contracted by 2.6 percent, moving to 20,587 MW from 21,133 MW.
Across the regional grids, Visayas saw the steepest price reduction. Average spot prices in the region plummeted by 21.9 percent to P11.29 per kWh from June’s P14.46 per kWh. This drop was supported by a 4 percent decline in demand to 2,080 MW alongside a 3.6 percent increase in available supply to 2,260 MW.
In Mindanao, prices decreased by 18.5 percent to P10.39 per kWh from P12.75 per kWh in June. Regional demand fell by 2.9 percent to 2,091 MW, while available supply dipped slightly by 0.3 percent to 3,283 MW.
Luzon recorded an 8.2 percent price reduction, with average spot rates falling to P7.30 per kWh from P7.95 per kWh in June. Power demand in Luzon contracted by 3.3 percent to 10,764 MW, while supply shrank by 3.9 percent to 15,043 MW.
Looking ahead, IEMOP anticipates favorable supply and demand conditions through the remainder of the year. Cacho explained that cooler weather during the upcoming “Ber” months typically leads to a natural decline in electricity consumption, which should help keep market rates stable leading into December.
IEMOP’s monthly spot market data covers the billing cycle ending on the 25th of each month. Fluctuation in WESM rates directly impacts the generation charges passed on to end-consumers by distribution utilities and electric cooperatives, depending on the volume of power each utility purchases from the spot market.
