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Electricity rates are expected to increase this January as wholesale power prices climbed in December due to stronger demand and reduced supply in parts of the country, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed.
IEMOP reported that the system average price at the Wholesale Electricity Spot Market (WESM) rose by 10 percent to ₱4.38 per kilowatt-hour (kWh) from ₱3.98/kWh in November. The uptick was driven by tighter supply conditions in the Visayas and Mindanao, where several generating units went offline in December.
Higher Demand Lifts Visayas And Mindanao Prices
Mindanao recorded the steepest price spike among the three grids, with WESM rates soaring by 56.7 percent to ₱7.82/kWh from ₱4.99/kWh. IEMOP attributed the increase to forced power plant outages that coincided with a modest 1.2-percent rise in demand. Available supply in the region dropped by 7 percent to 3,287 megawatts (MW) from 3,532 MW, tightening the market further.
In the Visayas, prices also climbed sharply to ₱7.22/kWh from ₱5.29/kWh, despite a four-percent increase in available capacity to 2,524 MW. IEMOP explained that stronger demand during the Christmas season, which rose by 10 percent to 1,978 MW, reduced the supply margin and pushed rates upward.
Luzon Market Stabilizes
In contrast, the Luzon grid posted a 15-percent decline in average WESM prices to ₱2.98/kWh from ₱3.52/kWh. The improvement came as supply expanded to 14,422 MW, while demand softened to 9,324 MW during the period.
According to IEMOP corporate planning and communication manager Arjon Valencia, only one market intervention was recorded from November 26 to December 25, 2025.
“This intervention occurred on Dec. 13, 2025, at interval 1:25 p.m. and affected Luzon, Visayas, and Mindanao. It was initiated by the market operator due to the failure to generate real-time dispatch results for that interval,” Valencia said in a Viber message.
Expanding Renewables Share
Overall, the effective spot settlement price (ESSP) across the market averaged ₱5.55/kWh, while spot-traded electricity accounted for 13.2 percent of total energy transactions. IEMOP also reported a rise in WESM-registered capacities, largely from solar projects, bringing total capacity to 30,085 MW.
Renewable energy sources accounted for 26 percent of total generation. Coal remained dominant, increasing its share to 56.4 percent from 53.6 percent, while solar grew to 4.1 percent from 3.9 percent. Wind power’s share rose to 2.3 percent, and geothermal edged up to 8.6 percent. Hydropower output slipped to 8.8 percent from 11.1 percent, and natural gas fell to 17 percent from 19 percent.
Outlook for Consumers
Analysts noted that the December price movements in the WESM may translate into higher electricity bills in January, as distribution utilities and electric cooperatives pass on part of their wholesale procurement costs to end-users.
WESM prices reflect real-time market dynamics such as generation availability, fuel costs, and demand fluctuations, factors that typically intensify during the holiday season.
Source:
https://newsinfo.inquirer.net/2153761/visayas-grid-under-yellow-alert-amid-rising-power-load
https://manilastandard.net/business/314678857/wesm-price-drops-to-p3-98-kwh-in-november.html
