Rainy Season Cools Demand, Power Rates Drop

The Wholesale Electricity Spot Market recorded lower average supply, demand, and prices in the June 2025 billing period, according to the Independent Electricity Market Operator of the Philippines.

The billing period covered May 26 to June 25, 2025.

System-wide average supply dropped to 21,432 megawatts, down 3.5% or 787 MW from the previous month.

Demand also declined to 14,545 MW, a 4.1% or 624 MW decrease attributed to cooler weather from the onset of the rainy season.

As a result, the average market price fell to PHP3.86 per kilowatt-hour, down 3.9% or PHP0.16 from May.

IEMOP said the decline was mainly due to stable supply margin levels.

In Luzon, supply and demand fell by 3.5% and 5.4%, respectively, leading to a 7.5% drop in prices to PHP3.91/kWh.

In the Visayas, supply declined by 1.1% and demand by 2.2%, but prices rose 4.3% to PHP3.93/kWh.

Mindanao bucked the national trend.

Supply dropped by 5.4%, but demand edged up 0.7%, resulting in a 13.2% spike in market price to PHP3.54/kWh.

Two market interventions triggered administered pricing during the period.

Renewable energy accounted for 21.6% of the total generation mix.

Coal’s share fell to 57.5% from 59.9% in May, while natural gas rose to 19% from 17%.

Oil-based generation held steady at 0.4%.

Solar declined to 3.8% from 4.6%, while hydro increased slightly to 7.8%.

Retail market activity saw slight growth.

Roughly 21% or 2.29 terawatt-hours of total customer transactions came from the retail market, up from the prior month.

The Effective Spot Settlement Price declined to PHP4.05/kWh from PHP4.13/kWh.

Spot quantity accounted for 18.6% of total trades.

Total trading value decreased from PHP13.55 billion to PHP12.50 billion.