Average spot market price drops in April amid improved supply
MANILA, Philippines — Energy prices in the wholesale electricity spot market (WESM) dropped month-on-month in April due to better supply conditions as more generators on outages, were able to resume operations, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
The average spot market price fell by 10.12% to P6.26 per kilowatt-hour (/kWh) compared to last month's level, IEMOP said Friday.
The figure covers the billing period of April 1 to 25, 2022.
In a virtual briefing, IEMOP Knowledge Management Specialist Carla Rica explained the average April supply rose by around 449 megawatts (MW) as more generators went back online.
Meanwhile, the monthly demand was lower by 146 MW mainly due to the entry of two typhoons, Agaton and Basyang, which brought relatively cooler temperatures across Luzon and Visayas.
Demand further decreased when people travelled to provinces for Holy Week, and businesses were closed for the holidays, she said.
During the April billing period, average supply hit a total of 13,995 MW, while demand reached 10,454 MW.
The spot market is a venue where buyers and sellers trade electricity as a commodity.
To address any supply gaps, power distributors often buy additional power from the WESM at higher costs compared to pre-agreed supply deals.
Distributors like Manila Electric Co. (Meralco) take into consideration the costs of buying electricity from the WESM, among others, when calculating their overall power rates every month.
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