Average prices at the Wholesale Electricity Spot Market (WESM) went up in January to to P6.98 per kilowatthour (kWh) compared to the previous month’s average of P6.43 per kWh due to forced and planned outages of major plants.
In a statement issued Friday, WESM operator Independent Electricity Market Operator of the Philippines (IEMOP) said power outages resulted in the imposition of a secondary price cap (SPC).
WESM is the country’s trading floor of electricity.
The imposition of a SPC of P6.245 per kWh upon breach of a P9 per kWh rolling average price over a 3-day period aims to protect the public and prevent the repetition of excessive and unreasonable high market prices.
IEMOP said both average supply and demand decreased based on a month-on-month comparison.
From 9,232 megawatts (MW) in December, the average supply declined by 4.41 percent o 8,544 MW in January.
Meanwhile, the average demand of 12,702 MW fell by 7.45% to 12,142 MW.
The same for the system peak demand during the last two months of 2021 wherein it recorded a decrease from 12,675 MW last November to 12,096 MW in December.