By Sheldeen Joy Talavera, Reporter
THE PHILIPPINES recorded the best electricity rate amongst its Southeast Asian peers in June, because the country relied on more expensive power plants to offset supply gaps attributable to plant shutdowns within the Visayas, based on the Department of Energy (DoE).
Energy Undersecretary Rowena Cristina L. Guevara said the Philippines had a median electricity rate of P12.43 per kilowatt-hour (kWh) last month, surpassing Singapore by lower than a centavo.
“In ASEAN (Association of Southeast Asian Nations), we had the best (electricity rate). We’re higher than Singapore for June,” Ms. Guevara said at a briefing on Monday.
She attributed the country’s high electricity rate to insufficient power supply, particularly within the Visayas which has been placed under a series of yellow alerts because of forced outages of several power plants.
“The Visayas grid is continuously placed under yellow alert, which is driving up electricity prices,” Ms. Guevara said.
A yellow alert is said when the ability buffer shouldn’t be enough to fulfill the transmission grid’s contingency requirement.
“Demand can be high in the course of the summer months,” the Energy official said. “For this reason, we want to operate dearer power plants. As a substitute of risking blackouts, we opt to run costlier plants.”
Amongst power providers in on-grid areas, Southern Leyte Electric Cooperative, Inc. had the best residential electricity rate in June at P16.57 per kWh amid a steep increase in generation charges, based on DoE data.
Northern Samar Electric Cooperative, Inc. followed with P15.72 per kWh, Kalinga-Apayao Electric Cooperative, Inc. with P14.53 per kWh, Manila Electric Co. with P14.48 per kWh, and Leyte IV Electric Cooperative, Inc. with P14.46 per kWh.
In off-grid areas, that are heavily depending on oil-based generating facilities, Busuanga Island Electric Cooperative had the most costly power rate at P24.92 per kWh.
Ms. Guevara said the DoE is coordinating with the Energy Regulatory Commission to make sure that distribution utilities and electric cooperatives are charging the appropriate prices to consumers.
The DoE official said electricity rates may increase if fuel costs proceed to rise. She encouraged distribution utilities to make use of cheaper fuel sources first to avoid running dearer power plants.
Energy Secretary Sharon S. Garin also urged power consumers to adopt energy conservation measures to ease the demand on the grid.
“It’s a reminder to all of us that we can even control the value of electricity depending on our consumption. If we eat less, the electrical co-ops is not going to be forced to make use of the dearer (fuel),” she said.
Gerry C. Arances, convener of consumer group Power for People Coalition, said the Philippines’ power rates reflect its high dependence on imported fossil fuels.
“The proven fact that the value of electricity in our country surpassed wealthier neighbors like Singapore illustrate just how heavy a burden power bills are for the unusual Filipino consumer,” Mr. Arances told BusinessWorld. “That is within the context of rising inflation and costs of living amid the continued war.”
Mr. Arances said that lowering power rates requires ending the country’s dependence on coal and gas to generate power, and utilizing more renewable energy.
“Turning to expensive electricity within the spot market each time coal plants fail is a non-solution — especially when renewable energy alternatives, particularly distributed renewables and solar energy, have long been available within the Philippines,” he said.
Meanwhile, industrial stakeholders have called for collaboration amongst government agencies, the ability sector and other stakeholders to strengthen power availability and reliability within the Visayas.
In keeping with the Semiconductor and Electronics Industries within the Philippines Foundation, Inc. (SEIPI), forced outages proceed to affect operations of companies as these disrupt production schedules, increase operating costs, and reduce manufacturing efficiency.
“Energy security is a shared responsibility,” SEIPI President Dan Lachica said. “Through continued cooperation between government, the ability sector, and industry, we will strengthen power reliability, support manufacturing operations, and reinforce the Philippines’ position as a competitive destination for semiconductor and electronics investments.”