The Philippine Electricity Market Corp. (PEMC) has reported an estimated savings of P4.91 billion for electricity consumers in the competitive retail electricity market (CREM) in the first three months of this year.
This savings amount was significantly higher compared to the P116.51 million saved by customers in the same period last year. The CREM allows customers to choose their electricity supplier, providing them with the opportunity to source their power requirements at competitive rates.
PEMC said commercial customers saved P1.80 billion, while industrial customers saved around P3.11 billion during the quarter. The CREM rates remained relatively stable, ranging from P5.33 per kilowatt-hour (kWh) to P5.41 per kWh.
In contrast, the generation rates charged by distribution utilities (DUs) increased to between P6.12 per kWh and P6.43 per kWh. PEMC attributed this increase in generation charges to higher supply costs, including changes in fuel prices and shifts in the generation mix.
PEMC noted that the wider price gap in favor of the CREM during the first quarter of this year highlights the increasing economic advantage of participating in the retail market. As retail rates remained relatively stable, the rise in DU generation rates made competitive supply more attractive, which could further encourage customers to transition to the retail market.
