Spot market power prices in the Philippines eased in July as softening demand met ample supply, according to the Independent Electricity Market Operator of the Philippines (IEMOP). As reported by BusinessWorld, the average rate on the Wholesale Electricity Spot Market (WESM) dropped 13.1% month on month to P8.31 per kilowatt-hour (kWh).
IEMOP, which operates the WESM where power generators bid and distribution utilities source additional supply, attributed the decline to softer demand against a backdrop of sufficient generation capacity. The month-on-month reduction reverses the upward trend seen in earlier months and provides some relief to consumers who have faced elevated electricity costs.
Market observers note that spot price movements are closely watched by utilities and regulators, as they influence the final rates charged to end-users. The July price level, while lower than June, remains above the long-term average, reflecting ongoing pressures in the national power supply mix.