IEMOP sees higher WESM prices during dry season

The Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) anticipates higher electricity prices in the Wholesale Electricity Spot Market (WESM) during the dry season due to increased demand, driven by summer heat and potential election campaign rallies.

Chris Warren Manalo, assistant manager at IEMOP's trading operations department, stated that warmer temperatures typically lead to higher demand and consequently, increased prices.

However, Manalo noted that February's spot prices are expected to remain similar to January's levels, which saw an average price drop to a two-year low of P2.96 per kilowatt-hour (kWh).

IEMOP's head of trading operations Isidro E. Cacho, Jr. added that while demand usually rises in summer, this year's peak may not reach last year's levels, possibly due to the La Niña phenomenon contrasting with last year's El Niño.

Cacho also mentioned that the growing economy and the addition of new power plants are expected to enhance supply stability.

The implementation of the reserve market is also seen to contribute to more secure and stable power transmission and supply, potentially leading to more stable prices overall.