The Independent Electricity Market Operator of the Philippines (IEMOP) reported a minimal increase in Wholesale Electricity Spot Market (WESM) prices in November.

IEMOP data showed a two percent decrease in both average supply and demand. Supply dropped from 19,897 megawatts (MW) to 19,492 MW, while demand fell from 13,972 MW to 13,659 MW.

Despite this, the average price rose slightly by 0.6 percent, from P4.39 to P4.42 per kilowatt-hour (kWh).

Arjon Valencia, IEMOP corporate planning and communications manager, attributed the price adjustment to a slight decrease in supply margins, from 3,835 MW to 3,793 MW.

"Although both system supply and demand decreased this month, the margin remains a factor in the slight price increase, as the supply margin for the November billing period is lower than October's," he explained to reporters.

"This is driven by the supply-demand situation in Luzon, which has an effect on the system collectively,” he added.

Luzon's average supply decreased by 2.4 percent, from 13,979 MW to 13,645 MW. Visayas experienced a slightly larger decrease, from 2,510 MW to 2,394 MW. Mindanao, however, saw a slight increase of 1.3 percent, with average supply rising from 3,408 MW to 3,453 MW.

Demand decreased across all three regions. Luzon's demand dropped from 9,915 MW to 9,663 MW, Visayas from 2,003 MW to 1,971 MW, and Mindanao from 2,054 MW to 2,030 MW.

Luzon was the only region with a price increase, rising 8.9 percent to P4.24 per kWh. Visayas saw an 18.6 percent decline to P4.82 per kWh, while Mindanao prices fell by 6 percent to P4.85 per kWh.

In addition to the supply margin, Valencia noted that coal continues to be a significant contributor to the generation mix, although its share decreased from 60 percent in October to 58 percent in November.