Electricity spot market prices in the Philippines rose in June due to thinner supply margins caused by persistent power plant outages in the Visayas region. The average spot market price increased by P1.77, or 22.7%, to P9.56 per kilowatt hour (kWh) despite lower demand. The tight supply situation was attributed to overall system energy supply decreasing to 21,133 megawatts (MW) from 21,374 MW a month earlier.
Demand for the period decreased to 15,454 MW from 15,755 MW a month earlier. Grid alerts, typically associated with summer months, extended beyond the summer period due to continued generating-unit outages and tighter regional supply conditions, particularly in the Visayas and Mindanao regions.
The introduction of new generating capacities entering the market is expected to support the country's electricity needs. However, several special pricing conditions were issued during the billing period, including the price substitution methodology and the secondary price cap mechanism, designed to avoid excessive high market prices.
The secondary price cap mechanism was triggered during the period, with the price substitution methodology reaching 17.71% in Luzon, 15.24% in Visayas, and 17.20% in Mindanao. The energy regulator is set to decide on a petition for a refund and recovery of billions of pesos.
The regulator is also drafting new rules to accelerate the adoption of renewable energy in off-grid areas and lower the universal charge for missionary electrification. The reforms aim to deliver more affordable, reliable, and sustainable power to off-grid communities while easing the burden on all electricity consumers.
