Due to the low supply of electricity and the high demand recorded this past June, the Philippines had the most expensive electricity rates among member nations of the Association of Southeast Asian Nations (ASEAN), according to a news report by GMA News.
Be reminded that the Philippines is experiencing weak economic growth, high inflation, and has been weak when it comes to attracting foreign direct investment. Could imagine how foreign investors would react to the expensive electricity here in the Philippines?
To put things in perspective, posted below is an excerpt from the GMA News report. Some parts in boldface…
The Philippines had the most expensive electricity rates among the Association of Southeast Asian Nations (ASEAN) in June due to low supply and high demand recorded during the month, the Department of Energy (DOE) reported Monday.
According to DOE Undersecretary Rowena Cristina Guevara, the country reported an average rate of P12.43 per kilowatt-hour (kWh) in June, surpassing that of Singapore by P0.093 per kilowatt-hour.
“Sa Visayas, siya talaga ‘yung pinakamahal dahil talagang may kakulangan tayo sa supply doon. Meron tayong 21 plants na naka-forced outage and therefore, dependent siya talaga sa Luzon at sa Mindanao for imported power,” she said in a virtual briefing.
(Visayas was really the most expensive because there was really a lack of supply there. There are 21 plants on forced outage, and therefore, it is really dependent on imported power from Luzon and Mindanao.)
“Alam niyo naman, naka-yellow alert sila palagi (As you know, they have been on yellow alert regularly) since May 13, and that is the one that is driving the price high for Visayas,” she added.
The Visayas grid has been on yellow alert — indicating that the operating margin is insufficient to meet the transmission grid’s contingency requirement — for several days in June, due to the continued forced outage of major coal plants in the region.
Among the outages recorded were Therma Visayas Inc. (TVI) units 1 and 2 and Panay Energy Development Corp. (PEDC).
“For the rest… Meron kasi din tayong mga matataas na demand during the summer months, and therefore we have to operate the more expensive power plants. Imbes na mag-blackout, paandarin na lang ‘yung mga medyo mahal na plant,” Guevara said.
(For the rest… Demand was also high during the summer months, and therefore, we have to operate the more expensive power plants. Instead of blackouts, we ran more expensive plants.)
Let me end this post by asking you readers: What is your reaction to this recent development? What do you think must be done to ensure abundant electricity for the Filipinos? Are you convinced now is the time for the government of the Philippines to go all-in on nuclear power? How much was your electric bill this past June?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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