Electricity prices in the country’s spot market fell to a seven-month low in September, driven by higher supply margins, with the Luzon rate dipping below P3 per kilowatt-hour (kWh).
The Wholesale Electricity Spot Market (WESM) saw system-wide rates decline by 33.8 percent to P3.04 per kWh from P4.59 per kWh on a monthly basis, according to the Independent Electricity Market Operator of the Philippines.
Latest IEMOP data showed that overall supply slightly grew to 20,712 megawatts from 20,611 MW, while system-wide demand dipped by 2.9 percent to 13,640 MW from 14,052 MW.
This marks the lowest WESM price since February’s P2.73 per kWh.
The decline in WESM rates for the September billing period will be reflected in the generation charges of consumers this month.
Operated by IEMOP, WESM serves as a centralized platform for electricity trading where distribution utilities and electric cooperatives can source their energy requirements.
Spot prices in Luzon dropped by 31.7 percent to P2.57 per kWh, while those in Visayas and Mindanao fell by 37.1 percent to P4.02 and P4.19 per kWh, respectively.
All three major island groups observed improved supply-demand conditions during the period, leading to lower market prices.
In Luzon, supply inched up to 14,681 MW from 14,646 MW, while demand edged 2.9-percent lower to 9,595 MW from 9,882 MW.
Similarly, Visayas saw supply climb by 1.5 percent to 2,440 MW from 2,405 MW, with demand dipping by four percent to 1,945 MW from 2,027 MW.
‘While Visayas experienced an earthquake on Sept. 30 that caused multiple tripping of transmission lines and generators, this will be part of the October billing period,’ IEMOP corporate planning and communications manager Arjon Valencia said.
As for Mindanao, the region’s supply increased to 3,592 MW from 3,561 MW, while demand slipped by 2.1 percent to 2,100 MW from 2,144 MW.
In terms of generation mix, coal still accounted for the largest share at 55.1 percent, followed by renewable energy (26 percent), natural gas (17 percent) and oil (0.5 percent).