Rainy days reduced electricity spot price by 25% in June

The average cost of electricity traded at the Wholesale Electricity Spot Market dropped in June as the rainy season pulled down demand, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

IEMOP, which operates the spot market, said on Tuesday that the average systemwide electricity spot price had declined to P6.15 per kilowatt-hour (kWh), 25 percent lower than P8.22 per kWh in May.

READ: ERC eases WESM trading curbs

This was as spot market demand fell to 14,710 megawatts (MW) from the previous 15,688 MW. Supply, on the other hand, ended flat at 19,638 MW, or just a 0.1 percent difference from May.

“[The] decrease in demand [was] due to the wet season,” said Arjon Valencia, corporate planning and communications manager at IEMOP.

The report covered the billing period between May 26 to June 25.

Mindanao had the highest decline in power spot prices at P4.61 kWh, followed by Luzon at P5.97 kWh, and Visayas at P8.56 kWh.

The demand from these three main islands also dropped during the period.

WESM is an open market where electricity is traded between power producers and distributors to get additional supply, with rates expected to be higher during the summer months.

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