WESM prices averaging P4.00/kWh
Thursday, September 21, 2006
By MYRNA M. VELASCO
The load weighted average price (LWAP) of the Wholesale Electricity Spot Market (WESM) has been inching up drastically in the past weeks, inching up to P4.00 per kilowatt hour (kWh) for August 26-September 25 billing cycle, which would be over P1.00 per kWh higher from the previous month’s P2.90 per kWh average.
Data culled from the WESM has shown that despite a relatively steady demand, average prices have started to soar since August 24, hitting P5.45 per kWh; and just goes down on Sundays because of depressed demand.
Price spikes were again posted last August 30 with LWAP surging to P6.093 per kWh and remained high at P5.537 per kWh and P5.184 per kWh on August 31 and September 1, respectively.
From September 2 until the 10th, spot prices were almost on high ranges of P4.719 per kWh to P5.619 per kWh; and only experiencing drops on Sundays at a range of P0.43 to P1.721 per kWh.
Market watchers said they are puzzled with the incessant climb in prices because there are no noted drastic changes in demand; if compared to last month’s trading.
They have surmised that this might be the period when state-owned National Power Corporation (NPC) is already starting to recover losses incurred in the past two months when WESM prices were reportedly cheaper purportedly due to relatively low price offers it made.
"This could be an indication that "bid low" scenario for NPC and the cheaper electricity for consumers is about to reach its end," a source has stressed.
posted by philpower @ 3:49 PM,
