The higher availability and dispatch of generated capacities from power plants have been softening prices in the Wholesale Electricity Spot Market (WESM) – and if the trend will be sustained, that could redound as reduction in the January electric bills of consumers.

According to the Independent Electricity Market Operator of the Philippines (IEMOP), the operating entity of the WESM, settlement prices at the spot market had been down by P0.22 per kilowatt hour (kWh) as of December 10.

The cut-off date for this supply month will be December 25 – and the settled prices will be part of the rate components to be passed on in the next billing cycle.

IEMOP emphasized that the WESM “experienced reduction in electricity demand coupled with improvements in supply levels translating to lower electricity prices in the spot market.”

Nevertheless, in the initial 10 days of trading this December, it was noted that there was already slight escalation in demand – of about 84 megawatts; although spot market settlement prices were still tamed.

As conveyed by EIMOP, overall settlement prices in the Luzon grid  had been pared by P0.11  per kWh; and it was similarly down by P0.52 per kWh in the Visayas grid; and P0.50 per kWh in Mindanao.

“Lower clearing prices during this period can be attributed to the combination of lower offer prices from generator-participants, potentially influenced by the decline in global fuel prices,” the WESM operator explained.

It further stressed “supply improved as generating plants completed their annual maintenance program together with notable higher supply availability from wind power plants” – which is typically the high-generation cycle for these renewable energy facilities due to the ‘amihan’ season.

Any prospective lowering of prices that consumers can look forward to in their electric bills at the starting month of 2024 will be a highly favorable development – especially so since most households will have their wallets squeezed during the Christmas holidays.

Onward to the summer months, however, it will be a different story – as Filipino consumers may go back to the ‘energy poverty threshold’ not just due to potential higher rates, but they will also need to grapple with threats of service disruptions.

To take the edge off on probable strain on power supply availability, IEMOP announced that it is already prepping for the launch of the reserve market by December 26 this year.