April WESM rates decline on higher supply margin

ELECTRICITY PRICES on the Wholesale Electricity Spot Market (WESM) declined in April as supply improved with power generators scheduling less maintenance during election season, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

The market operator reported that the national average WESM price decreased 15.3% month on month to P4.52 per kilowatt-hour (kWh).

Between March 26 and April 25, available supply increased 8.8% to 21,345 megawatts (MW). Demand rose 7.8% to 14,739 MW.

“Given the upcoming elections and the dry season, there are fewer scheduled outages, so the supply margin is higher compared to the previous month despite the increase in demand,” Arjon Valencia, corporate planning and communications manager of IEMOP, said via Viber.

In Luzon, the WESM price fell 16.5% month on month to P4.59 per kWh, with supply rising 10.9% to 15,000 MW while demand grew 9.3% to 10,613 MW.

IEMOP said that Visayas average dropped 17.6% to P4.52 per kWh. Supply improved 8.4% to 2,563 MW while demand increased 5% to 2,009 MW.

The Mindanao WESM rate fell 6.3% month on month to P4.11 per kWh. Available supply increased 1.8% to 3,782 MW while demand climbed 3.6% to 2,118 MW.

IEMOP operates the WESM, where energy companies buy power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera