Connect with us

Hi, what are you looking for?

Economy

Power spot market prices double in May as warm weather sets in

THE AVERAGE power price on the wholesale electricity spot market (WESM) more than doubled this month to average P7.72 per kilowatt hour (kWh) from P3.85 in April, following a surge in demand and supply disruptions, the Independent Electricity Market Operator of the Philippines (IEMOP) said Thursday.

“For the month of May, the market operator noted an increasing demand trend as warmer temperature prevailed throughout the country. As the dry season (progresses), average demand increased from 10,120 MW (megawatts) from the previous month to 11,091 MW in May,” the IEMOP said in a statement Thursday.

The rise in demand was accompanied by lower supply due to generator outages.

IEMOP Chief Operating Officer Robinson P. Descanzo called this month’s average “significantly high.” The next-highest monthly price average was recorded in March at P4.16 per kWh.

“Given the sustained high prices, the secondary price cap was imposed on May 7 and May 20 to 22. The secondary price cap is a price-mitigating mechanism designed to limit the persistent high market prices,” the IEMOP said in a statement.

On Thursday, the market operator also delivered an update to market participants, laying down the protocols on limited live dispatch operations (LLDO) for the three major island grids, which will come into force on May 29.

“The conduct of the LLDO is the final step prior to the commercial operations of WESM Mindanao and EWDO (enhanced WESM design and operations) on June 26. This effort is also in line with the Market Operator’s pursuit to provide sustainable market solutions and services to its stakeholders and participants,” it said.

The proposed changes to the WESM operations include reducing the time between scheduling and dispatch of power, and implementing automatic pricing corrections, among others. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

OUTSTANDING external debt at the end of June was at its highest level since at least 2011, according to the Bangko Sentral ng Pilipinas...

Economy

By Russell Louis C. Ku TRANSPORTATION BUDGETS need to provide for service contracting in order to offer relief for public utility vehicle (PUV) drivers,...

Economy

EXPORTERS have been advised to expect new UK tariffs with the launch of a separate British preferential trade access scheme after it exited the...

Economy

LABOR Secretary Silvestre H. Bello III said seafarers need to be better protected and proposed amendments to the 15-year-old maritime convention of the International...

Economy

The pandemic has accelerated new ways of working across various industries, including the auditing profession. However, new ways of operating for audit firms and...

Economy

SENIOR citizens get inoculated with their first dose of the Sinovac vaccine at the Marikina Sports Complex. — PHILIPPINE STAR/ MICHAEL VARCAS THE PHILIPPINES...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!