ELECTRICITY PRICES at the Wholesale Electricity Spot Market (WESM) climbed in August due to higher demand and outages of several plants, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
Spot prices increased by 15.3% to P4.59 per kilowatt-hour (kWh) in August from P3.99 per kWh a month earlier, data from the IEMOP showed.
Between July 26 and Aug. 25, the available supply slipped by 0.7% month on month to 20,611 megawatts (MW). Demand increased by 1.7% month on month to 14,052 MW.
The WESM prices for August supply month will be reflected in consumers’ electricity bills for September.
On Luzon, the average electricity rate slipped by 4.1% to P3.76 per kWh in August from P3.92 per kWh a month ago.
The available supply increased by 0.7% month on month to 14,646 MW while demand grew by 1.8% to 9,882 MW.
“In Luzon, despite higher demand and higher supply, prices dropped slightly, even with more power exports to Visayas through high-voltage direct current (HVDC),” IEMOP said in a statement.
Spot price in the Visayas climbed by 45.7% to P6.40 per kWh from P4.39 per kWh, with supply falling 5% to 2,405 MW and demand increasing by 1.5% to 2,027 MW.
“Prices surged due to outages of several coal plants and the shutdown of biomass facilities due to end of milling season led to a yellow alert last Aug. 1, Aug. 4, and Aug. 5,” the market operator said.
A yellow alert is issued when the operating margin is insufficient to meet the transmission grid’s contingency requirement.
Power rates in Mindanao jumped by 75.4% to P6.66 per kWh from P3.80 per kWh in the previous month.
The grid’s available supply fell by 3.4% month on month to 3,561 MW. Demand went up by 1.9% month on month to 2,144 MW.
IEMOP said that outages of coal units prompted the declaration of yellow alert and higher prices “due to power plants with costlier fuel clearing the market.”
“Coincident forced and planned outages of cheaper plants during the second week of the August billing period led to overall price increases,” the agency said.
Isidro E. Cacho, Jr., IEMOP’s vice-president for trading operations, said that electricity demand during the last quarter of the year usually ramps up in preparation for the holiday season.
“That’s where we usually see the ramp up of demand. Probably our manufacturing plants are preparing for the Christmas season,” Mr. Cacho said in a virtual briefing.
IEMOP operates the WESM, where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera