{"id":20778,"date":"2025-02-14T09:43:38","date_gmt":"2025-02-14T09:43:38","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/?p=20778"},"modified":"2025-02-14T09:45:25","modified_gmt":"2025-02-14T09:45:25","slug":"electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\/","title":{"rendered":"Electricity Rates Expected to Rise Amid Summer Heat and Election Campaigns"},"content":{"rendered":"

MANILA, Philippines \u2014 Electricity rates in the country\u2019s power spot market may increase in the coming months as demand rises due to hotter temperatures and political campaign rallies<\/strong>.<\/p>\n

The Wholesale Electricity Spot Market (WESM)<\/strong>, where electricity is traded, recorded an average price of P2.96 per kilowatt-hour (kWh) last month<\/strong>, the lowest in two years. However, the Independent Electricity Market Operator of the Philippines (IEMOP)<\/strong> cautioned that this downward trend may not continue as market prices could surge during the dry season.<\/p>\n

\u201cIt is just a supply and demand condition. Of course, when it\u2019s hot, we can see that there will be an increase in demand. So, therefore, prices increase during the summer months,\u201d<\/strong> said Chris Warren Manalo<\/strong>, assistant manager at IEMOP\u2019s trading operations department.<\/p>\n

Electric cooperatives and distribution utilities rely on WESM to supplement their energy supply when their contracted sources are insufficient. For example, Manila Electric Co. (Meralco)<\/strong> obtained 28% of its energy requirements for January<\/strong> from WESM. The lower spot market rate that month helped offset rising costs from independent power producers and power supply agreements<\/strong>.<\/p>\n

Price Trends and Election Impact<\/strong><\/h3>\n

Spot market prices in February<\/strong> are expected to remain close to January levels<\/strong> due to the lingering cold weather.<\/p>\n

\u201cThe price between January and February is not expected to differ much. I think it will be at the same level, with either a slight increase or decrease, but still within the same range,\u201d<\/strong> Manalo said.<\/p>\n

However, IEMOP trading operations head Isidro Cacho Jr.<\/strong> pointed out that election campaign rallies<\/strong> could further increase power demand during the dry season.<\/p>\n

Data from IEMOP showed that during the 2022 presidential election season (February to May), the average power demand was 12,222 megawatts (MW)<\/strong>, which led to an average spot market price of P6.34 per kWh<\/strong> over that period.<\/p>\n

Supply Outlook for 2025<\/strong><\/h3>\n

Despite the expected demand increase, Cacho remains optimistic about supply stability<\/strong> this year.<\/p>\n

\u201cCompared to last year, this year looks much better in terms of supply, which means more stable prices in the market,\u201d<\/strong> he said.<\/p>\n

With the anticipated La Ni\u00f1a phenomenon<\/strong>, Cacho also predicts that demand will be lower than last year<\/strong>, which was affected by El Ni\u00f1o<\/strong>.<\/p>\n

\u201cGenerally, our demand will increase because of the summer, but compared to last year, it will possibly not reach the same peak this year,\u201d<\/strong> he added.<\/p>\n

In May 2024<\/strong>, WESM recorded a system-wide demand of 15,688 MW<\/strong>, which pushed power rates to as high as P8.22 per kWh<\/strong>, according to IEMOP data.<\/p>\n

Would you like any modifications or additional details?<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA, Philippines \u2014 Electricity rates in the country\u2019s power spot market may increase in the coming months as demand rises due to hotter temperatures and political campaign rallies. The Wholesale Electricity Spot Market (WESM), where electricity is traded, recorded an average price of P2.96 per kilowatt-hour (kWh) last month, the lowest in two years. However, the Independent Electricity Market Operator of the Philippines (IEMOP) cautioned that this downward trend may not continue as market prices could surge during the dry season. \u201cIt is just a supply and demand condition. Of course, when it\u2019s hot, we can see that there will be an increase in demand. So, therefore, prices increase during the summer months,\u201d said Chris Warren Manalo, assistant manager at IEMOP\u2019s trading operations department. Electric cooperatives and distribution utilities rely on WESM to supplement their energy supply when their contracted sources are insufficient. For example, Manila Electric Co. (Meralco) obtained 28% of its energy requirements for January from WESM. The lower spot market rate that month helped offset rising costs from independent power producers and power supply agreements. Price Trends and Election Impact Spot market prices in February are expected to remain close to January levels due to the lingering cold weather. \u201cThe price between January and February is not expected to differ much. I think it will be at the same level, with either a slight increase or decrease, but still within the same range,\u201d Manalo said. However, IEMOP trading operations head Isidro Cacho Jr. pointed out that election campaign rallies could further increase power demand during the dry season. Data from IEMOP showed that during the 2022 presidential election season (February to May), the average power demand was 12,222 megawatts (MW), which led to an average spot market price of P6.34 per kWh over that period. Supply Outlook for 2025 Despite the expected demand increase, Cacho remains optimistic about supply stability this year. \u201cCompared to last year, this year looks much better in terms of supply, which means more stable prices in the market,\u201d he said. With the anticipated La Ni\u00f1a phenomenon, Cacho also predicts that demand will be lower than last year, which was affected by El Ni\u00f1o. \u201cGenerally, our demand will increase because of the summer, but compared to last year, it will possibly not reach the same peak this year,\u201d he added. In May 2024, WESM recorded a system-wide demand of 15,688 MW, which pushed power rates to as high as P8.22 per kWh, according to IEMOP data. Would you like any modifications or additional details?<\/p>\n","protected":false},"author":1,"featured_media":20780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[14603],"tags":[115,263,2288,1363,3684,4467,4818,8218,9079,8579,1436,6739],"class_list":["post-20778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-amid","tag-and","tag-campaigns","tag-election","tag-electricity","tag-energy","tag-expected","tag-featured","tag-heat","tag-rates","tag-rise","tag-summer"],"yoast_head":"\nElectricity Rates Expected to Rise Amid Summer Heat and Election Campaigns - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Electricity Rates Expected to Rise Amid Summer Heat and Election Campaigns - Energy Buzz\" \/>\n<meta property=\"og:description\" content=\"MANILA, Philippines \u2014 Electricity rates in the country\u2019s power spot market may increase in the coming months as demand rises due to hotter temperatures and political campaign rallies. The Wholesale Electricity Spot Market (WESM), where electricity is traded, recorded an average price of P2.96 per kilowatt-hour (kWh) last month, the lowest in two years. However, the Independent Electricity Market Operator of the Philippines (IEMOP) cautioned that this downward trend may not continue as market prices could surge during the dry season. \u201cIt is just a supply and demand condition. Of course, when it\u2019s hot, we can see that there will be an increase in demand. So, therefore, prices increase during the summer months,\u201d said Chris Warren Manalo, assistant manager at IEMOP\u2019s trading operations department. Electric cooperatives and distribution utilities rely on WESM to supplement their energy supply when their contracted sources are insufficient. For example, Manila Electric Co. (Meralco) obtained 28% of its energy requirements for January from WESM. The lower spot market rate that month helped offset rising costs from independent power producers and power supply agreements. Price Trends and Election Impact Spot market prices in February are expected to remain close to January levels due to the lingering cold weather. \u201cThe price between January and February is not expected to differ much. I think it will be at the same level, with either a slight increase or decrease, but still within the same range,\u201d Manalo said. However, IEMOP trading operations head Isidro Cacho Jr. pointed out that election campaign rallies could further increase power demand during the dry season. Data from IEMOP showed that during the 2022 presidential election season (February to May), the average power demand was 12,222 megawatts (MW), which led to an average spot market price of P6.34 per kWh over that period. Supply Outlook for 2025 Despite the expected demand increase, Cacho remains optimistic about supply stability this year. \u201cCompared to last year, this year looks much better in terms of supply, which means more stable prices in the market,\u201d he said. With the anticipated La Ni\u00f1a phenomenon, Cacho also predicts that demand will be lower than last year, which was affected by El Ni\u00f1o. \u201cGenerally, our demand will increase because of the summer, but compared to last year, it will possibly not reach the same peak this year,\u201d he added. In May 2024, WESM recorded a system-wide demand of 15,688 MW, which pushed power rates to as high as P8.22 per kWh, according to IEMOP data. Would you like any modifications or additional details?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/energybuzz.ph\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\/\" \/>\n<meta property=\"og:site_name\" content=\"Energy Buzz\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-14T09:43:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-14T09:45:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/energybuzz.ph\/wp-content\/uploads\/2025\/02\/power-lines_cjb.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/#\\\/schema\\\/person\\\/344f8dbaaecf75e51367eef93f492892\"},\"headline\":\"Electricity Rates Expected to Rise Amid Summer Heat and Election Campaigns\",\"datePublished\":\"2025-02-14T09:43:38+00:00\",\"dateModified\":\"2025-02-14T09:45:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/\"},\"wordCount\":430,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/energybuzz.ph\\\/staging\\\/6915\\\/wp-content\\\/uploads\\\/2025\\\/02\\\/power-lines_cjb.webp\",\"keywords\":[\"amid\",\"and\",\"campaigns\",\"election\",\"electricity\",\"energy\",\"expected\",\"featured\",\"heat\",\"rates\",\"rise\",\"summer’\"],\"articleSection\":[\"Energy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/\",\"url\":\"https:\\\/\\\/energybuzz.ph\\\/electricity-rates-expected-to-rise-amid-summer-heat-and-election-campaigns\\\/\",\"name\":\"Electricity Rates Expected to Rise Amid Summer Heat and Election Campaigns - 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The Wholesale Electricity Spot Market (WESM), where electricity is traded, recorded an average price of P2.96 per kilowatt-hour (kWh) last month, the lowest in two years. However, the Independent Electricity Market Operator of the Philippines (IEMOP) cautioned that this downward trend may not continue as market prices could surge during the dry season. \u201cIt is just a supply and demand condition. Of course, when it\u2019s hot, we can see that there will be an increase in demand. So, therefore, prices increase during the summer months,\u201d said Chris Warren Manalo, assistant manager at IEMOP\u2019s trading operations department. Electric cooperatives and distribution utilities rely on WESM to supplement their energy supply when their contracted sources are insufficient. For example, Manila Electric Co. (Meralco) obtained 28% of its energy requirements for January from WESM. The lower spot market rate that month helped offset rising costs from independent power producers and power supply agreements. Price Trends and Election Impact Spot market prices in February are expected to remain close to January levels due to the lingering cold weather. \u201cThe price between January and February is not expected to differ much. I think it will be at the same level, with either a slight increase or decrease, but still within the same range,\u201d Manalo said. However, IEMOP trading operations head Isidro Cacho Jr. pointed out that election campaign rallies could further increase power demand during the dry season. Data from IEMOP showed that during the 2022 presidential election season (February to May), the average power demand was 12,222 megawatts (MW), which led to an average spot market price of P6.34 per kWh over that period. Supply Outlook for 2025 Despite the expected demand increase, Cacho remains optimistic about supply stability this year. \u201cCompared to last year, this year looks much better in terms of supply, which means more stable prices in the market,\u201d he said. With the anticipated La Ni\u00f1a phenomenon, Cacho also predicts that demand will be lower than last year, which was affected by El Ni\u00f1o. \u201cGenerally, our demand will increase because of the summer, but compared to last year, it will possibly not reach the same peak this year,\u201d he added. In May 2024, WESM recorded a system-wide demand of 15,688 MW, which pushed power rates to as high as P8.22 per kWh, according to IEMOP data. 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