Electricity prices on the spot market surged in May due to thin power supply margin, according to the Independent Electricity Market Operator of the Philippines (IEMOP), as reported by BusinessWorld.
IEMOP reported on Wednesday that the average power rates in the Wholesale Electricity Spot Market (WESM) jumped 38.5% from the previous month to P7.79 per kilowatt-hour (kWh). The increase reflects tighter supply conditions as demand rose and plant outages reduced available capacity.
The thin supply margin, which fell below the ideal level, drove prices higher during peak hours. Market observers noted that the situation could persist unless new generating capacity comes online or demand growth slows.