Electricity consumer groups set meet on high power cost, other problems

business mirror
MONDAY, 24 JANUARY 2011 21:10

Electricity consumer groups all over the country have scheduled a conference to discuss problems in the power sector, specifically the high costs of electricity, supply and the right to access.

Under the theme “Unmasking the true costs of electricity in the Philippines,” the conference is organized by the Freedom from Debt Coalition (FDC) and the Foundation for a Sustainable Society Inc. (FSSI). It will be held at Ciudad Christia in San Mateo, Rizal from January 25 to 27.

Expected to attend are officials from the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), as well as industry experts and representatives of consumer groups and regional electric cooperatives from various parts of the country.

Ricardo Reyes, FDC president, said the present situation calls for the public to be more vigilant and informed on electricity pricing and supply issues.

“This is important because ordinary consumers like us tend to fall under the ‘captive or uncontested market’ of the profit-driven power sector. It is for this reason that we are initiating this National Electricity Consumer Conference,” Reyes said.

Access to electricity

According to FDC, an average 40 percent of households in the Philippines have no electricity. In poor areas like the Autonomous Region in Muslim Mindanao, the majority—70 percent—are without power. Development projects and programs will continue to be hampered due to this negative condition.

“While the government claims to have energized most, if not all, barangays, the question of access to electricity is a serious issue of poverty and a major development concern,” FDC said.

“Those who have access to electricity suffer from expensive monthly bills. Expensive electricity is an issue that cuts across all income classes and sectors. Aside from poor families, foreign and local [economy] businessmen are, likewise, complaining of high and increasing electricity costs that contribute to the uncompetitiveness of their products in global markets,” the group said.

FDC cited as example the semiconductor industry, which is the leading export industry in the Philippines, spends around 20 percent to 45 percent of its operating expenses on electricity. For the textile industry, electricity costs constitute approximately 30 percent as compared to Indonesia (12 percent) and Malaysia (10 percent).