Energy Undersecretary Rowena Guevara told an online press briefing on July 20 that the Visayas has some of the highest electricity rates in the country because prolonged yellow alerts have forced the grid to dispatch more expensive power sources after 21 power plants went on forced outage.
The Visayas has been under yellow alert since May 13, leaving available generating capacity unable to keep up with demand. To maintain supply, the grid has relied on power imports from the Luzon and Mindanao grids and costlier generating units.
“Alam niyo naman naka yellow alert sila palagi (The Visayas grid has been on yellow alert) since May 13, I think, and that is the one that is driving the price high for Visayas,” she added.
Because of high electricity demand during the summer months, Guevara said grid operators had no choice but to dispatch more expensive power plants to ensure enough electricity was available to meet demand.
"Imbis na mag-blackout ay paandarin na lang yung mga medyo mahal na mga plants (Rather than experiencing a blackout, we will just operate the more expensive power plants)," Guevara said.
Comparative rates
During the press briefing, Guevara said the national average residential electricity rate was P12.24 per kilowatt-hour (kWh) in June.
Meralco's residential electricity rate, however, stood at P14.48 per kWh for a typical household consuming 200 kWh a month.
The rate increased by 15 centavos per kWh from the previous month due to higher generation charges driven by elevated prices in the Wholesale Electricity Spot Market (WESM) amid increased demand, red alerts, and transmission line constraints. The increase was partially offset by lower transmission charges and Meralco's ongoing refund mechanism.
Among the country's 20 largest distribution utilities, however, Meralco ranked only fourth in terms of residential electricity rates.
Southern Leyte Electric Cooperative (Soleco) posted the highest residential electricity rate in June at P16.57 per kWh, up 32 percent from the previous month after generation charges surged by nearly P4 per kWh.
It was followed by Northern Samar Electric Cooperative (Norsamelco) at P15.72 per kWh, Kalinga Apayao Electric Cooperative (Kaelco) at P14.53, Meralco at P14.48, and Leyte Electric Cooperative IV (Leyeco IV) at P14.46.
Soleco, Norsamelco, and Leyeco IV are all located in the Visayas.
Among off-grid distribution utilities, which generally rely on oil-fired generating facilities, Busuanga Island Electric Cooperative (Biselco) posted the highest residential electricity rate at P24.92 per kWh, up 1 percent from the previous month.
Least expensive
Among the 20 distribution utilities with the lowest residential electricity rates, Pampanga Electric Cooperative (Pelco) III posted the lowest rate at P9.07 per kWh, down 10 percent from the previous month.
Batangas Electric Cooperative (Batelec) II, meanwhile, recorded the highest rate within the group at P11.27 per kWh, up 14 percent from May, primarily due to a P1.25-per-kWh increase in generation charges.
The five distribution utilities with the lowest residential electricity rates in June were Pelco III at P9.07 per kWh, Angeles Electric Cooperative (AEC) at P9.44, Southern Capiz Electric Cooperative (Sachelco) at P9.85, Sultan Kudarat Electric Cooperative (Sukelco) at P9.99, and Southern Cotabato Electric Cooperative II (Socoteco II) at P10.00 per kWh.)
Fuel prices
Rising diesel prices could push electricity rates higher again, prompting energy officials to urge consumers to conserve electricity and help ease pressure on the already strained power supply.
Fuel prices increased this week by as much as P10.68 per liter for diesel, P3.65 per liter for gasoline, and P11.77 per liter for kerosene due to ongoing tensions in the Middle East.
“Depending on the fuel price increase in the next few weeks, we might see an increase in the price of electricity similar to what happened in the past,” said Guevara.
“We will be encouraging our distribution utilities to first use the cheaper fuel before using the more expensive fuel. Of course, we’ll also encourage the public to please conserve energy such that we don't have to run the higher-priced power plants,” she added.
Energy Secretary Sharon Garin explained that although oil accounts for only about 3 percent of the country’s energy mix, increases in fuel prices can still drive power rates higher by raising transportation expenses and other costs associated with electricity generation. —Ed Corrie S. Narisma
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