Philippine power rates now the highest in Asia

Manila Standard Today

by Maricel Cruz

THE Philippines last year charged the highest electricity rate to residential customers in Asia at 18 US cents a kilowatt-hour, according to a study conducted by the Australia-based International Energy Consultants.

The group reached its conclusion after comparing the power rates charged in Asia in October 2010, when the Philippines beat all the other countries in the region with its charges.

In response, Eastern Samar Rep. Ben Evardone, an administration ally, urged the newly appointed officials of the Energy Regulatory Commission to do something about the high electricity rates here.

“I’m urging the new ERC commissioner to protect the interests of the consumers and not to succumb to the pressures and intense lobby of energy companies which have pending petitions for power rate increases,” said Evardone, chairman of the House information committee.

Based on the study, Evardone says, the Philippines—with its average retail rate of 18.1 US cents a kilowatt hour—eased out Japan as the country with the most expensive electricity in Asia in the same month last year. The rate charged to Japan’s residential consumers in October 2010 was 17.9 US cents a kilowatt hour.

The same study says the Philippines also had the second highest industrial rate in the world at 13 US cents a kilowatt hour, next only to Singapore’s 14 US cents but higher than Japan’s 12 US cents, Thailand’s 9 US cents, Malaysia’s 8 US cents, South Korea’s 7 US cents, Vietnam’s 6 US cents, and Indonesia’s 5 US cents.

“The high cost of electricity in the Philippines was traced by the group to the fact that all costs—from producing power to distribution and taxes—are passed on to consumers,” Evardone said.

He says the Philippines is also the only country in Asia that has privatized its power sector, and the only one offering no subsidies on power rates.

The new officers of the Energy Regulatory Commission must protect consumers, he says.

“They should not be stampeded into approving all the pending petitions for power rate increases,” Evardone said.

“We will be watching them very closely if they are truly for the welfare of the consumers.”