DoE commissions power rates study
MANILA, Philippines — So it can aptly explain to the Filipino consumers how electricity rates are being structured in this country, the Department of Energy (DoE) is extending full support to the Asian Rate Comparison Study being spearheaded by the United States Agency for International Development.
Energy Secretary Rene D. Almendras, who is currently being floated to be given a new Cabinet post in Malacanang, noted that the USAID study probes into the scale of subsidies being lumped into the rates of other countries, especially among Southeast Asian neighbors.
In a presentation he earlier made in Congress on the study’s preliminary findings, he emphasized that if the electricity rates of the other countries in the region are not heavily-subsidized, the resulting outcome will be comparable with the rates being charged in the Philippines.
The final report of the USAID rate study consultant is due this year and is expected to guide DoE not only on its information dissemination initiatives, but also in crafting future policies that will help alleviate the consumers’ burden over expensive electricity rates.
The study initially assessed average electricity tariffs in four key Asean countries – the Philippines, Indonesia, Malaysia, and Thailand.
It can be gleaned that the average rate of Manila Electric Company (Meralco) as of 2011 has been highest at $0.1984 per kilowatt hour (kWh), as compared to Malaysia’s $0.1074 per kWh; Thailand’s $0.1037 per kWh and Indonesia’s $0.0723 per kWh.
In the same presentation, however, it was shown that the Meralco rate has zero subsidy; while the three others are saddled with government-allocated dole-outs. The scale of subsidies for Indonesia was placed at $0.0838 per kWh; Malaysia at $0.0451 per kWh; and Thailand at $0.0881 per kWh.
Without the subsidies, the comparative rates for the covered countries will be as follows: $0.1984 for Meralco (Philippines); $0.1561 per kWh for Indonesia; $0.1525 per kWh for Malaysia; and a closer $0.1918 per kWh for Thailand.
And in cases wherein same level of government subsidies will be levied on Meralco rates, it has been specified that its tariffs will be lower at $0.1146 per kWh (applying Indonesia’s subsidy); $0.1533 per kWh (with Malaysia’s subsidy level); and $0.1103 per kWh (employing Thailand’s subsidy).
The energy department has been under pressure to lay down measures that can pare electricity rates in the country. But the position of the sitting energy chief is that the rate structure must first be understood so that solutions can be explored judiciously.
The exorbitant rates being levied on end-users, especially for power-intensive industries, are being blamed for the waning competitiveness ranking of the country versus Asian neighbors.
The report of Australia-based International Energy Consultants listing the Philippines having the highest electricity rates in Asia, surpassing Japan, has triggered uproar in various sectors. Thus, the energy department is being pressed to explain such scenario.



Comments
Please login or register to post comments.