An overhead power line used for electricity transmission and distribution across large distances is seen in Bulacan.The Independent Electricity Market Operator of the Philippines on Thursday said electricity spot market prices in the first two weeks of June dropped by P1.73 per kilowatt hour to P7.10 per kWh, mainly due to a reduction in demand and a modest increase in supply.
“Demand tapered off. The cool weather contributed a lot. The new transmission line also freed up supply from Bataan area. Ilijan plant also resumed operations. In terms of demand, it has gone down. Supply, on the other hand, has increased,” said IEMOP Corporate Strategy and Communications head Isidro Cacho Jr. during an online news briefing on Thursday.
Furthermore, progress continues with the testing of the Mindanao-Visayas Interconnection Project , which commenced on April 30, 2023, at an initial load of 22.5 MW. The load test will gradually increase until it reaches its full transfer capacity by the third quarter of this year. IEMOP expects that the WESM rates could be retained in the coming months if no power plants will conk out. “Barring any unforeseen or unplanned forced outages, there is a big probability level that prices will be maintained. We are now at P7 per kWh level as opposed to P9 per kWh in the previous months. If that trend continues, we see transactions in the spot market reflecting that,” said Cacho.