Power rate hike possible by April —ERC

Electricity rates are expected to rise in April due to the ongoing Middle East conflict and the peso's decline against the dollar, according to the Energy Regulatory Commission (ERC).

“Kung ito ay epekto na doon sa presyo ng supply ng ating mga generation companies sa ating mga distribution utilities at mga retailer, ay maaari nang makita natin ito sa ating bill ngayong Abril,” ERC Chairperson Francis Saturnino Juan said in an interview on Super Radyo dzBB, according to JP Soriano’s 24 Oras Weekend report on Saturday.

(If this is an effect on the prices of the supply of our generation companies to distribution utilities and retailers, we may already see it reflected in our bills this April.)

However, the ERC has yet to determine the exact increase in power rates.

The National Association of Electricity Consumers for Reforms (NASECORE) said if the projected increases are based on the additional cost, then the electricity rate cost may increase by P2 to P4, but that would only cover the supply given by the Wholesale Electricity Spot Market.

It added that an additional P2 is equivalent to a P400 additional payment for households consuming 200 kilowatt hours.

NASECORE said these increases should be verified through an audit and done on a staggered basis.

ERC clarified that it is issuing directives to electric utilities and generation suppliers to collect and increase charges on a staggered basis.

Juan said the high power demand also contributes to the increase in power rates.

"Kakailanganin natin ng mas maraming supply. Kakailangan din natin ang ibang planta na tumatakbo sa mas mahal na panggatong," Juan said.

("We will need more power supply. We will also need other plants that operate on more expensive fuel.)

He added that generation firms said they have enough coal to operate their power plants amid the increasing prices of delivering coal to the country.

"Nasa 10% pa [ang mga planta na nakadepende sa petrolyo]... Ang mga ito ay kinakailangan bilang standby," Juan said.

(About 10% of power plants depend on fuel. We need them on standby.)

"Sa ngayon, 'yan ang nakikita natin [tiyak ang supply ng kuryente, pero mataas ang singil]... Pero naghahanda pa rin ang ating gobyerno," he added. 

(For now, we're seeing that the electricity supply is stable, but rates are high. However, our government is still making preparations.) —Mariel Celine Serquiña/KG, GMA Integrated News