WESM rates dip in November on improved supply, lower demand

ELECTRICITY RATES on the Wholesale Electricity Spot Market (WESM) dipped in November as supply improved while demand fell, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

IEMOP reported a decline of 12.4% in WESM rates system-wide to P3.98 per kilowatt-hour (kWh) in November compared to a month earlier.

Between Oct. 26 and Nov. 25, power supply improved 0.5% month on month to 19,998 megawatts (MW), while demand fell 2.7% to 13,507 MW.

“Across the grid, regional price movement followed similar trends,” according to Arjon B. Valencia, manager for corporate planning and communications at IEMOP.

On Luzon, spot prices dipped 11.1% to P3.52 per kWh due to higher supply and lower demand.

Available supply increased 1.9% to 14,050 MW, outpacing demand, which declined 1.8% to 9,598 MW.

“In the Visayas and Mindanao, prices also decreased, driven by a larger margin and drop in demand for the former, and supported by higher import volumes coming from the Visayas for the latter,” Mr. Valencia said.

The WESM rate in the Visayas fell 9.6% to P5.29 per kWh, with supply decreasing 0.1% to 2,418 MW and demand falling 7.5% to 1,797 MW.

IEMOP said spot prices in Mindanao fell 14.9% to P4.99 per kWh.

Available supply fell 4% to 3,532 MW while demand decreased 2.3% to 2,112 MW.

Mr. Valencia said the share of coal-fired power continued its downward trend to 53.6% from 56.5%.

IEMOP operates the WESM, where energy companies can buy power if their long-term contracted power deals prove inadequate for their needs. — Sheldeen Joy Talavera