48 power utilities charge higher rates
Consumers served by nearly 50 distribution utilities continued to endure electricity costs higher than the national average of P12.43 per kilowatt hour (kWh) in June, while those providers that sourced their supply from renewables charged less, according to a Manila-based think tank.
The analysis of the Institute for Climate and Sustainable Cities (ICSC) came after the Department of Energy (DOE) said that the Philippines had the highest power rates in the Association of Southeast Asian Nations, even surpassing Singapore.
The report shows that a total of 48 on-grid power distributors charged residential rates above the national benchmark, with Southern Leyte Electric Cooperative posting the highest rate at P16.57 per kWh.
The country’s biggest electricity distributor, Manila Electric Co. (Meralco), came in the ninth spot, with a residential power rate reaching P14.48 per kWh last month.
Both the ICSC and the DOE said that the significant jumps in power rates in June were greatly influenced by the prolonged shutdown of several coal-fired power plants in the Visayas, pushing energy prices traded at the spot market higher.
The Wholesale Electricity Spot Market is a platform where power is traded between producers and distributors to boost supply.
As coal-fired plants provide around-the-clock electricity supply, their going offline has a huge impact on power generation.
