Utilities & Mobile Noreco II rates September 2026

Today, the WESM (Wholesale Electricity Spot Market) information regarding the average traded market price for electricity in the Philippines in August was released.
The numbers for the Visayas grid are truly alarming, the WESM average price rose from P11.29 for July to P18.59/kwh for August, an increase of P7.3 per kwh.
It's a bit complicated, but because Noreco II relies on WESM for about 40% of the electricity they buy, the rise in the (variable) WESM rate translates for 40% in the generation rate that Noreco II charges its customers.
The remaining 60% Noreco buys at fixed contractual prices from GreenCore Geothermal Inc. and from FDC-MPC, a company with coal-fired plants.
If I understand correctly how it works there is roughly a 1 month delay in the effect on the Noreco rates, so the increase will have effect in September.
That would mean that Noreco customers could expect another increase in their electricity rate for September of at least 3 peso per kwh so an increase from P15.1 to P18 or so.
We'll see how people are going to react if I'm correct, but the uproar after the August increase doesn't do much to calm my expectations.

When it comes to the causes of the WESM price movements it is clear that the spot market (buy/sell for instant delivery) is dominated by suppliers who can quickly adjust production, which basically means those running on the most expensive source of fuel, so oil and LNG, because the other suppliers (coal fired, hydro, geothermal) are already producing at maximum capacity. Other factors are the cable capacities that allow transport of electricity from/to other regions (Mindanao and Luzon).