Customer Effective Spot Settlement Price in the Wholesale

Electricity Spot Market (WESM)

26 December 2016 – 25 December 2017

The effective spot settlement price (ESSP) in the WESM for 2017 recorded a
12-month average of PhP3,369.11/MWh, resulting in a 1.30% increase from
last year’s average of PhP3,326/MWh. Albeit, the 2017 ESSP average
registered the second to the lowest ESSP average registered since 2008.

Yearly Average ESSP

9,000

6,750
PhP/MWh

4,500

2,250

'-
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year-on-Year Change in Average ESSP

281% 248%

188%

94%
46%
13% 1%
0%

-30% -20% -25%

-43% -40%
-94%
2009 2010 2011 2012 2013 2014 2015 2016 2017

It is worthy to note that the October billing month registered the highest
ESSP for the year with PhP4,055/MWh, surpassing the summer months
with average ESSP ranging from PhP3,512/MWh to PhP4,008/MWh. The
said price level may be attributable to a tight supply margin caused mainly
by the system-wide outage capacity averaging at 2,861 MW during the
period.

While outage capacity in Visayas decreased due to the resumption of

geothermal power plants affected by the Intensity 5 earthquake in July,
there was a high outage capacity in Luzon mainly due to the forced outages
of major coal and natural gas power plants. 1 Meanwhile, the resulting
November and December 2017 prices showed the expected seasonal low
prices with PhP3,214.21/MWh and PhP2,416.87/MWh, respectively. We
note, however, that the same resulted to a minimal increase as compared to
the 2016 prices.

2017 Monthly ESSP

4,500
4,000
3,500
PhP/MWh

3,000
2,500
2,000
1,500
1,000
500
-

2016 vs 2017 ESSP

7,000
6,000
5,000
4,000
3,000
2,000 2016
1,000 2017
-

eyg/07 February 2018

1 MAG-MMAR-2017-10