The Philippines’ average power costs in June declined by 16 centavos, or 3.9 percent, to ₱3.86 per kilowatt-hour (kWh) from ₱4.02 per kWh in the previous month, as demand dropped faster than the decrease in supply.

According to the Independent Electricity Market Operator of the Philippines, this is based on data at the Wholesale Electricity Spot (WESM) for the billing period from May 26, 2025 to June 25, 2025).

However, this does not mean electricity rates will be lower, as the Manila Electric Company noted that the generation charges of its regular suppliers may actually be higher, due to price pressures such as the weaker peso, which affects dollar-denominated supply costs.

Another factor that may push up electricity prices this month is the possible higher reserve market prices.

The utility noted that this is only the initial indication of numbers, which may still change once the bills for power supply come in.

It also noted that, “we have seen demand go down since summer so this is also a big factor that will affect the bills of our customers because the bills are reflective of the consumption of customers.”

In June 2025, the system-wide average supply decreased to 21,432 MW, representing a 3.5 percent dip from May 2025. Demand also decreased to 14,545 MW, a 4.1 percent drop compared to the previous month, brought about by the onset of the rainy season,” the IEMOP said.

It noted that the price trend from May to June 2025 showed a decline mainly due to stable supply margin levels.

In Luzon and Visayas, both supply and demand decreased. However, the regional market price decreased in Luzon by 32 centavos, or 7.5 percent, to ₱3.91 per kWh, while the price increased in Visayas by 16 centavos, or 4.3 percent, to ₱3.93 per kWh.

In Mindanao, supply decreased while demand increased, leading to prices in the region rising by 41 centavos, or 13.2 percent, to ₱3.54 per kWh. During the billing period, two market interventions were recorded and subjected to the administered price.

In terms of system-wide generation mix, renewable energy (RE) contributed 21.6 percent of total generation. Coal’s share declined to 57.5 percent, down from 59.9 percent in the previous billing period.

Oil-based technologies remained the same at 0.4 percent, while natural gas rose from 17 percent to 19 percent. Furthermore, solar generation declined from 4.6 percent to 3.8 percent, while hydro generation increased its share from 7.7 percent to 7.8 percent.

Approximately 21 percent (2.29 TWh) of total customer transactions are from retail market for this billing period were purchased, a slight increase from the previous month.