What electricity consumers want to hear from Marcos’ midterm Sona

In a month, President Marcos will deliver his fourth State of the Nation Address (Sona), signifying the middle of his term. Despite being halfway into the presidency, pressing issues concerning rising electricity prices remain unaddressed.

The Philippines continues to have the second-highest expensive electricity prices in Southeast Asia. According to the 32nd Status Report on the implementation of the Electric Power Industry Reform Act of 2001 (Epira), there has been a significant increase in the country’s average electricity rates. The administration has failed to address the recurring red and yellow alert levels during the dry months. Except for the amendment of the Epira, Mr. Marcos had no other substantial accomplishments directly related to lowering electricity prices.

When Kuryente.org raised these concerns to the Department of Energy (DOE) last year, former Energy secretary Raphael Lotilla said prices of imported inputs, such as liquefied natural gas, coal, and fuel are external factors that are beyond the government’s control.

While this is true, the government still has oversight on charges of transmission, distribution, and taxes that can be adjusted to lower the rates. Government taxes and other charges, which represent 11.7 percent of electricity bills, are under the Energy Regulatory Commission (ERC). Lotilla either failed to look at these or simply ignored them, and instead tried to condition consumers into accepting rate hikes.

Moreover, the government does not provide subsidies to consumers, unlike other countries. Kuryente.org acknowledges DOE Undersecretary Rowena Guevara’s statement that the government supports power producers serving remote areas through universal charges. However, we do not understand how power leaders fail to balance the interests of stakeholders.

What electricity consumers want to hear from the President is a concrete proposal on how to reduce power rates.

Among Kuryente.org’s recommendations are to support the call to remove the Expanded Value Added Tax (E-VAT), universal charges, and the Feed-in Tariff Allowance (Fit-All).

The Fit-All is one of the items on electricity bills that subsidize selected Renewable Energy (RE) power producers. Kuryente.org believes that if the government wants to increase RE contribution to our energy mix, it should do so in a manner that will not pass the burden of costs to consumers.

For the DOE, electricity consumers want a comprehensive audit of all expenses billed to consumers. We want to see reforms in the cost structure, focusing on non-fuel charges as well as renewable energy development that excessively burdens consumers by seeking government funding instead of ratepayer subsidies.

For the ERC, Kuryente.org seeks the abolition of the E-VAT, universal charges, and the Fit-All tariff, while enhancing transparency in pricing mechanisms.

Electricity consumers also call on Congress to enact amendments to Epira to ensure consumer protection and affordability first. They must formalize subsidies for lifeline consumers and advocate for progressive energy taxes. Congress must also ensure increased oversight of DOE and ERC’s regulatory decisions.

Kuryente.org underscores that affordable electricity is a fundamental right, not a privilege. Filipino consumers have long been burdened by unjust electricity costs. The remaining years of the Marcos administration are more than enough to introduce small but effective changes to our electricity charging structure that could alleviate consumers of the burden of high electricity prices.

In his upcoming Sona, the President has the opportunity to advocate for reforms that treat electricity as a social good rather than a mere commodity.

BAS UMALI,
kuryente.org@gmail.com