WESM Prices Double and Summer Heat Drive Electricity Rates Up

When summer comes, electricity rates also rise along with the rampant use of cooling devices. This month, electricity consumers in the Visayas are facing a significant increase in their bills as summer heats up. To make matters worse, the Wholesale Electricity Spot Market (WESM) prices have nearly doubled compared to previous months. The increase in WESM prices, driven by a combination of lower supply and higher demand, has a ripple effect on the region’s electricity rates.

Two Main Factors: WESM Prices Double + Summer Heat

You may have already noticed the spike in your electricity bill. Independent Electricity Market Operator of the Philippines (IEMOP) said the significant surge started in the first week of March 2025.

WESM prices in the Visayas increased by 95.5%, and this trend continued in the succeeding summer months.

This surge was attributed to a combination of factors, including:

• Planned and Forced Outages: Power plants, particularly coal and natural gas facilities, experienced planned and forced outages, reducing the electricity available in the grid.
• Increased Demand: The extreme heat, which started in the first week of March, led to a 5.9% increase in energy supply demand in Visayas, reaching 13,670 MW.

This mismatch between supply and demand significantly impacted electricity prices.

Tips to Lower Electric Consumption

With the summer months bringing higher electricity demand and potentially higher bills, Negros Power gives consumers some steps to reduce their energy consumption. There are still ways to reduce our electricity consumption, with some due diligence on the part of the consumers. Here are some of them:

• Use energy-efficient appliances: Opt for energy-saving features and Energy Star ratings.
• Turn off lights and electronics when not in use: This simple habit can significantly reduce energy consumption.
• At night, turn on the lights a little later, since the sun goes down rather late.
• Use fans instead of air conditioners: Fans use significantly less energy than air conditioners.
• Keep windows and blinds closed during the hottest parts of the day: This helps prevent heat from entering your home.
• Adjust the aircon’s thermostat: Setting your thermostat a few degrees higher can save energy without sacrificing comfort.

By implementing these simple energy-saving tips, consumers can help reduce their electricity bills and contribute to a more sustainable energy future.