Higher power spot market rates loom

Electricity rates in the country's power spot market are likely to rise in the coming months due to higher demand driven by the summer heat and election campaign rallies.

- By BRIX LELIS

The Wholesale Electricity Spot Market (WESM), the centralized venue for electricity trading as a commodity, saw its average price drop to a two-year low of P2.96 per kilowatt-hour (kWh) last month.

But the Independent Electricity Market Operator of the Philippines (IEMOP), which operates WESM, warned that this low rate may not last as market prices could spike during the dry months.

"It is just a supply and demand condition. Of course, when it's hot, we can see that there will be an increase in demand. So, therefore, prices increase during the summer months," said Chris Warren Manalo, assistant manager at IEMOP's trading operations department.