AN OFFICIAL of the Independent Electricity Market Operator of the Philippines (IEMOP) expressed hope for the stabilization of the power supply, especially in the Visayas, noting that changes in capacities have affected prices.
In recent years, the yellow and red alert status in power grids is a normal occurrence during the summer months given the increase in demand amid the decline in capacity due to regular maintenance works for several power plants as well as forced outages of some.
However, the situation has lingered until June this year, and IEMOP vice president for trading operations Engr. Isidro Cacho, in an online briefing, said this has resulted in price volatility until this month.
“June 2026 was a volatile month for the WESM (Wholesale Electricity Spot Market). While the country had sufficient supply overall, outages, reserve shortages, and transmission limitations created tighter conditions in some regions. Market prices reflected these conditions and showed where additional supply, reserves, and transmission capacity were most needed,” he said on Thursday, July 9.
EIMOP data show that for the Visayas alone, average supply declined by 178 megawatts (MW) so far this month relative to the May level, while demand went down 12MW during the same period.
As a result of a larger drop in supply relative to demand, the average price of electricity in the Visayas rose 41.7 percent, from P10.20 per kilowatt-hour (kWh) to P14.45/kWh.
The same data show that the highest average regional price was P21.68/kWh, recorded last June 22.
It also showed that recurring deficiencies in the grid’s reserves added to the uptick in market prices.
Cacho, thus, expressed hope for the resolution of the issue soon, noting government interventions, which include tapping battery storage facilities and power barges to boost supply.
“Hopefully, this July, our prices will go down in the market because of improved supply,” he added.
Meanwhile, Energy Regulatory Commission (ERC) officials, in a briefing during the day, said measures are being implemented to address the situation, and Visayas power generating firms have been tasked to explain the issue and to come up with a solution immediately.
ERC director Sharon Montaner said ERC and Department of Energy (DOE) officials have met with the generation companies’ officials and the regulator is now evaluating the latter’s responses on the issue. (PNA)
