The Philippines recorded the highest electricity rate among its Southeast Asian peers in June, with an average rate of P12.43 per kilowatt-hour (kWh), surpassing Singapore by less than a centavo.
The high electricity rate can be attributed to insufficient power supply, particularly in the Visayas region, which has been placed under a series of yellow alerts due to forced outages of several power plants.
A yellow alert is declared when the power buffer is not enough to meet the transmission grid's contingency requirement, resulting in a reliance on more expensive power plants to meet demand.
Among power providers in on-grid areas, Southern Leyte Electric Cooperative, Inc. had the highest residential electricity rate in June at P16.57 per kWh, followed by Northern Samar Electric Cooperative, Inc. at P15.72 per kWh, and Kalinga-Apayao Electric Cooperative, Inc. at P14.53 per kWh.
Off-grid areas, which are heavily dependent on oil-based generating facilities, also experienced high electricity rates, with Busuanga Island Electric Cooperative having the most expensive power rate at P24.92 per kWh.
The Department of Energy is coordinating with the Energy Regulatory Commission to ensure that distribution utilities and electric cooperatives are charging the right prices to consumers and to mitigate any potential increase in electricity rates due to rising fuel costs.
Energy Secretary Sharon S. Garin urged power consumers to adopt energy conservation measures to ease the demand on the grid, stating that consumers can control the price of electricity depending on their consumption.
Experts have also emphasized the need for the country to reduce its dependence on imported fossil fuels and transition to more renewable energy sources to lower power rates and alleviate the burden on consumers.
Industry stakeholders have called for collaboration among government agencies, the power sector, and other stakeholders to strengthen power availability and reliability in the Visayas region, which will help to support manufacturing operations and reinforce the Philippines' position as a competitive destination for semiconductor and electronics investments.
