Luzon power spot prices jump in March

MANILA, Philippines — Electricity spot prices in Luzon surged by over 50 percent in March, triggering a double-digit spike nationwide even as rates remained lower in the Visayas and Mindanao.

The average power rate in Luzon rose by 52.5 percent to P4.10 per kilowatt-hour in March from P2.69 in February, according to the Independent Electricity Market Operator of the Philippines.

IEMOP corporate planning and communications manager Arjon Valencia said the region experienced tighter supply margins due to forced outages of several power plants.

“This includes coal and natural gas (plants) reaching around one to 4.3 megawatts, while planned outages across various technologies totaled 976.3 MW,” Valencia said yesterday.

Wholesale Electricity Spot Market (WESM) prices in the Visayas and Mindanao, meanwhile, declined last month.

The Visayas saw a 5.4-percent drop in rates to P5.08 per kWh from P5.37, while the average price in Mindanao fell by 15.7 percent to P4.43 per kWh from P5.25.

The decreases, however, were not enough to offset the sharp rise in Luzon, resulting in a 23-percent increase in the system-wide rate to P4.31 per kWh from P3.50 on a monthly basis.

The latest adjustments will be reflected in consumers’ power generation charges this month.

Operated by IEMOP, WESM is the centralized venue for electricity trading where power utilities like Meralco can source their energy requirements.

Amid surging fuel prices driven by the Middle East crisis, WESM operations have been suspended since March 26.