The average system-wide electricity rates at the Wholesale Electricity Spot Market went down by 14.3 percent to P2.96 per kilowatt-hour from P3.45 per kWh between Dec. 26, 2024 and Jan. 25, 2025 on softer demand.
Data from WESM operator Independent Electricity Market Operator of the Philippines showed that system-wide average supply also decreased by 0.2 percent to 20,110 megawatt (-41 MW), while average demand declined by 5.6 percent to 12,529 MW (-746 MW).
IEMOP said this resulted in an average system margin of 7,581 MW for the period, which was 10.26 percent higher than the previous billing period’s average system margin of 6,875 MW.
“Due to the increase in the average system margin, the system average price decreased by 14.3 percent, dropping to P2.96 per kWh,” it said.
WESM is one of the main sources of power supply in the country. The others are power supply agreements with generators and independent power producers.
WESM rates in Luzon eased 8.5 percent to P 2.98 per kWh from P3.26 per kWh as average supply in the region decreased by 1.6 percent to 13,962 MW (-230 MW), while average demand fell 6.4 percent to 8,741 MW (-602 MW).
IEMOP said this resulted in an average margin of 5,221 MW, which was 7.67 percent higher than the previous billing period’s margin of 4,849 MW.
It said that while Visayas supply decreased by 4.5 percent to 2,372 MW (-112 MW), demand also declined by 4.4 percent to 1,856 MW (-86 MW).
IEMOP said this shift in supply and demand led to a 19.1-percent reduction in the regional average price, which dropped to P3.13 per kWh.
WESM rates in Mindanao dropped 31.9 percent to P2.65 per kWh as supply increased by 8.7 percent to 3,775 MW (+302 MW), while demand fell by 2.9 percent to 1,931 MW (-58 MW).
IEMOP said coal remained the dominant energy source in Mindanao, although its share decreased to 55 percent from 58.87 percent, while natural gas saw a gradual increase to 17 percent from 15 percent from the previous billing month.
Data further showed that among renewable sources, hydro generation slightly rebounded from 905 gigawatt-hours in December 2024 to 956 GWh in January 2025.
Geothermal energy remained stable, contributing around 8 percent to 9 percent of total generation while wind and solar energy showed minimal changes.
Wind generation slightly decreased and solar generation slightly increased in January 2025.
IEMOP said that overall, total energy generation was lower due to reduced demand, falling by 2.75 percent to 8,991 GWh in January from 9,245 GWh in December last year.
