Friday, April 20, 2012

Too Expensive Electricity Cost of the Philippines

President Benigno S. Aquino III said he will ask the Energy Regulatory Commission (ERC) to review whether the 69 centavos per kilowatt increase in the power generation rates is warranted.

"The temporary solution is that we will be making the appropriate… Congress first, then also the Executive will be making the appropriate representations with the ERC to review this particular decision," the President said in a forum during the 17th World Electronics Forum and general meeting of the Semiconductors Electronics Industries of the Philippines Inc. in Mactan Shangri-la Island Spa and Resort here in Lapu-Lapu City.

"We are cognizant of the fact that the price of electricity in this country is a major deterrent to further investments and we are trying to accelerate the process where the benefits under the EPIRA law will be realized the soonest so that we can have more competitive electricity rate structure within the country."

The law that created the ERC was roughly about 10 years old and had become the subject of proposed amendments, the President said.

The industry also was not able to start the Wholesale Electricity Spot Market (WESM), which is supposed to bring down the prices of electricity in the country.

WESM is a venue where electricity made by power-producing companies are centrally coordinated and traded like any other commodity in the market of goods with a level playing field.

At the same time, the President said they were also encouraging more power generating companies to set up their plants to address the power needs of the country.

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