‘Power spot-market rate to decline’

By Lorenz S. Marasigan – December 17, 2020
from Business Mirror

The downward trend of electricity spot-market price will persist this month due to ample supply and cooler weather conditions coupled with the implementation of community quarantines in different parts of the country.

Independent Electricity Market Operator of the Philippines Inc. (IEMOP) Manager for Pricing Validation and Analysis John Paul Grayda said the effective settlement spot price in the Wholesale Electricity Spot Market (WESM) will continue to drop in December, after recording a 10.1-percent decline in November to P1.86 per kilowatt hour from P2.07 per kilowatt hour in October.

“WESM prices continue to drop in the month of December 2020 as ample generation supply and colder weather conditions persist on top of the implementation of community quarantine in several parts of the country,” he said.

November spot prices were also affected by the consecutive typhoons—which caused forced power outages in several areas—that entered the Philippines during the said month. In the same month, the Energy Regulatory Commission (ERC) declared a two-day market suspension due to Typhoon Ulysses.

Grayda added that the latest data showed that in November, average supply and demand stood at 13,444 megawatts (MW) and 9,219 MW, respectively. Peak demand, meanwhile, stood at 11,485 MW. November’s spot price was the lowest recorded since May, when the market price was at P1.98 per kilowatt hour. Electricity spot price started dropping in October due to the typhoons that ravaged different parts of the country.

In October, IEMOP said La Niña could dampen electricity demand in Luzon throughout the year.

“Given the La Niña, there is a downtrend. If this persists, then the trend will continue,” said Grayda in a virtual news briefing.

IEMOP is the operator of the WESM, the country’s trading floor for electricity.