AVERAGE power rates on the Wholesale Electricity Spot Market (WESM) rose in December due to thinning supply margins in the Visayas and Mindanao, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
IEMOP reported that power prices system-wide rose 10.1% month on month to P4.38 per kilowatt-hour (kWh) in December.
Available supply increased 1.2% to 20,233 megawatts (MW). Demand dipped 0.5% to 13,440 MW.
Spot prices on Luzon declined 15.4% month on month to P2.98 per kWh.
Available supply increased 1.2% from a month earlier to 20,233 MW, outpacing demand, which declined 0.5% to 13,440 MW.
Supply margins for the Visayas and Mindanao narrow by 136 MW and 245 MW, respectively, according to Arjon B. Valencia, manager for corporate planning and communications at IEMOP.
WESM prices in the Visayas rose 36.6% month on month to P7.22 per kWh, with supply increasing 4.4% to 2,524 MW and demand growing 10.1% to 1,978 MW.
Mindanao spot prices rose 36.3% to average P7.82 per kWh.
Available supply dipped 7% to 3,287 MW, while demand rose 1.2% to 2,137 MW.
“These supply and demand conditions resulted in tighter margins and price spikes,” Mr. Valencia said.
The secondary price cap was applied to mitigate the sustained high prices in both regions, he said.
IEMOP operates the WESM, where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs.
Last year, WESM prices fell to multi-year lows, with the effective price averaging P4.32 per kWh in the first 11 months. — Sheldeen Joy Talavera