WESM electricity prices drop 11.2% in May

Electricity prices on the Wholesale Electricity Spot Market (WESM) fell by 11.2% in May, settling at P4.01 per kilowatt-hour (kWh) compared to April's P4.52 per kWh.

This price decrease was driven by a 4.1% increase in system-wide power supply, which outpaced a 2.9% rise in demand.

The Independent Electricity Market Operator of the Philippines (IEMOP) reported a wider supply margin of 4,945 MW in May.

In Luzon, spot prices dipped 7.9% to P4.23 per kWh as supply rose 4.1% while demand grew 3.6%.

Conversely, WESM rates in the Visayas surged 17.9% to P3.71 per kWh despite a 4% increase in supply and a 3.5% rise in demand.

Mindanao experienced a significant 24.3% drop in spot power prices to P3.11 per kWh, with supply increasing by 4% while demand decreased by 0.9%.

Coal remained the primary power generation source on the WESM, contributing 59.9%, followed by renewable energy (22%) and natural gas (17%).

No market interventions were reported during the May billing period.