WESM Feb prices slip on ample electricity supply before MidEast conflict escalation

AVERAGE electricity prices on the Wholesale Electricity Spot Market (WESM) slipped as supply growth outpaced demand nationwide in February, before the market digested regulators' warning that escalating tensions in the Middle East were likely to push power prices higher in the months ahead.

- JED MACAPAGAL

Electricity sold on WESM for the entire country fell 1.8 percent last month as higher available supply offset increased demand, data from WESM operator--the Independent Electricity Market Operator of the Philippines (IEMOP)--showed.

IEMOP said the nationwide average price as of February 25 eased to P3.50 per kWh from P3.56 per kWh in January.

The decline came even as average demand for the period rose 3.1 percent to 12,874 megawatts from 12,492 MW.

Average supply, however, grew at a faster 4.4 percent to 19,992 MW from 19,152 MW.

Regional split

In Luzon, the average WESM price dropped 17.2 percent to P2.69 per kWh from P3.25 per kWh in January.

Demand on the main grid climbed 5.2 percent to 9,016 MW from 8,574 MW, while average supply increased 8 percent to 14,286 MW from 13,228 MW.

The Visayas posted the opposite trend, with the average WESM price surging 26.6 percent to P5.37 per kWh from P4.24 per kWh.