Electricity cost lower in January

January's Power Shift Electricity Costs Dive as Demand Decreases

As we navigate the dynamic landscape of electricity costs, it's crucial to stay informed about market fluctuations. This month, we're pleased to report that the national average cost of power has taken a significant dip. According to the Independent Electricity Market Operator of the Philippines (IEMOP), the average cost per kilowatt-hour (kWh) decreased from P4.38 in December to P3.56 in January.

The Factors Behind the Shift

A combination of factors contributed to this decline. Firstly, demand for electricity dropped nationwide, likely due to the prevailing cold weather. This decrease in demand was more pronounced in certain regions, such as the Visayas and Mindanao, where supply was already constrained by power plant shutdowns.

Regional Trends

Let's take a closer look at the regional trends

Luzon Electricity costs rose slightly to P3.25/kWh, likely due to outages. Supply decreased from 14,422 MW in December to 13,288 MW in January, while demand dropped from 9,324 MW to 8,574 MW.
Visayas Power costs plummeted to P4.24/kWh, a significant decrease from P7.22 per kWh in December. Supply fell from 2,524 MW to 2,361 MW, and demand decreased from 1,978 MW to 1,861 MW.
Mindanao Electricity costs also dropped to P4.27/kWh, down from P7.82 per kWh in December. A higher supply of 3,563 MW in January compared to 3,287 MW in December contributed to this decrease, while demand fell from 2,137 MW to 2,056 MW.

Conclusion

The news is welcome for distribution utilities, electric cooperatives, and consumers alike. The lower electricity costs will have a positive impact on the bottom line of these organizations, especially in regions where supply was previously constrained. As we move forward into 2026, it's essential to continue monitoring market trends and adapting to changing conditions.

About the Author

[Your Name] is a seasoned writer with expertise in energy markets and industry analysis. With a keen eye for detail and a deep understanding of the complexities involved, [Your Name] provides insightful commentary on the latest developments in the electricity sector.

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Keywords electricity cost, IEMOP, power market, Philippines, January, demand, supply, Luzon, Visayas, Mindanao

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Edward Lance Arellano Lorilla

CEO / Co-Founder

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