Power spot market prices likely lower this month

MANILA, Philippines — Electricity prices in the spot market are expected to go down this month due to a reduction in electricity demand coupled with improvements in supply levels.

The Independent Electricity Market Operator of the Philippines (IEMOP), the operator of the Wholesale Electricity Spot Market (WESM), reported a decline in the average electricity spot market prices during the first two weeks of the December billing month covering the period from Nov. 26 to Dec. 10.

IEMOP said the WESM average price as of Dec. 10 decreased by P0.22 per kilowatt-hour (kWh) to P3.90 per kWh from P4.12 per kWh in November.

According to data from IEMOP,   the Luzon region saw a decrease of P0.11 per kWh during the two-week period, while Visayas and Mindanao recorded declines of P0.52 per kWh and P0.5 per kWh, respectively.

“Lower clearing prices during this period can be attributed to the combination of lower offer prices from generator participants, potentially influenced by the decline in global fuel prices,” IEMOP said.

IEMOP head of trading operations Isidro Cacho said average WESM rates for the rest of the December billing month are expected to stay between the P3 per kWh and P4 per kWh level, lower than last month’s P4.12 per kWh.

“We expect that to be the price toward the end of this year. January is still a cool month, so we anticipate prices to be the same as December,” Cacho said.

IEMOP fulfills its mandate by striving to achieve the  WESM objective of establishing a transparent, fair, competitive, and reliable electricity trading market nationwide.

It is currently gearing up for the commercial operations launch of the reserve market on Dec. 26.