Philippine Power Prices Drop 11% in May – IEMOP

Electricity prices in the Wholesale Electricity Spot Market (WESM) fell by 11 percent in May, signaling potential relief for consumers amid rising demand, according to data from the Independent Electricity Market Operator of the Philippines (IEMOP).

The average market price dropped to PHP 4.01 per kilowatt-hour (kWh) as of May 25, down from PHP 4.52/kWh in April.

The decline was driven by a 4.1 percent increase in power supply, reaching 22,218 megawatts (MW), while demand rose by a more modest 2.9 percent to 15,169 MW.

The resulting supply margin expanded to 4,945 MW in May, compared to 4,585 MW the previous month, easing pressure on electricity costs.

“The price trend from April to May showed a decline, in contrast to the same period in 2024, where prices increased. This difference was due to a higher supply margin in May,” said IEMOP Corporate Planning and Communications Manager Arjon Valencia.

Luzon and Visayas recorded similar supply-demand behavior, with increases on both ends but larger margins that kept market prices lower.

In Mindanao, electricity prices also dipped as supply rose and demand decreased, further strengthening the downward pressure on rates.

IEMOP confirmed that no market interventions were needed during the May billing period, indicating stable trading conditions.

Retail market purchases accounted for 21 percent, or 2.17 terawatt-hours (TWh), of all transactions last month.

The average retail spot price also dropped to PHP 4.13/kWh from April’s PHP 4.82/kWh.

Spot market volume declined to 19.4 percent of total trades, while the total trading value fell to PHP 13.55 billion from PHP 17.17 billion due to lower prices.

Coal continued to dominate the power generation mix at 59.9 percent, a slight increase from April levels.

Renewables contributed 22 percent, while natural gas remained stable at 17 percent.

Hydropower output rose to 7.7 percent of the generation mix, while solar dropped to 4.6 percent and oil-based sources fell to just 0.4 percent.