WESM prices surge 95.5%, Luzon sees 102.7% jump

As summer approaches, the Independent Electricity Market Operator of the Philippines (IEMOP) reported a significant 95.5% increase in wholesale electricity spot market (WESM) prices for March, raising concerns over supply and demand imbalances.

The average WESM price rose to P5.34 per kilowatt-hour (kWh), compared to February's rate of P2.73/kWh, driven by extreme heat during the first week of March.

Supply decreased from 20,512 megawatts (MW) in February to 19,611 MW in March due to forced outages and power plant derations, while demand increased by 5.9% to 13,670 MW.

Luzon experienced a surge of 102.7%, with prices climbing to P5.50 per kWh from P2.71/kWh, as supply dropped by 6.5% to 13,530 MW while demand grew by 7.1% to 9,713 MW.

Visayas saw a WESM price increase of 95.5%, rising to P5.48 per kWh from P2.81/kWh, with supply declining slightly and demand increasing moderately.

Mindanao recorded a more modest rise in prices, up by 61.3% to P4.39 per kWh from P2.72/kWh, amidst slight increases in both supply and demand.