PH has second highest electricity price in Asia

THE country’s average electricity price for residential customers is now second highest in Asia as of January this year, according to a consulting firm that specializes in providing power market advisory services in the Asia-Pacific region.

           Based on data presented by International Energy Consultants Managing Director and lead consultant Dr. John Morris, the top 5 countries with the highest power rates surveyed in Asia are Japan, Philippines, Singapore, Hong Kong, and Thailand.

The Philippines electricity prices at an average cost of P15 per kilowatt hour are some of the highest in Asia and have become prohibitive to many investors. Compared to booming countries like Malaysia, Thailand and Indonesia, the Philippines is badly suffering from a dip in foreign direct investment with expensive electricity cost as the main culprit.

Solution? Construction of more coal-fired power plants to meet the need to produce about 1,000 megawatts a year.

 “Electricity tariff in Luzon will further go down should investment in new power generation be made to meet rapid demand growth, and competition at retail level is promoted such that wholesale electricity cost reductions are fully passed on to customers,” Morris noted.

To address the situation, President Rodrigo Duterte said the Philippines will continue to use coal in power generation but will implement new technologies to minimize emissions.

“But for as long as the most viable fuel is coal and cheapest so that the power can also be delivered the energy to the people at a much lower price, then we’ll have no other alternative except to upgrade the technology to its fullest―to limit,” Duterte said during a  recent visit to Sarangani for the groundbreaking of another coal-fired-power plant.

The President said he sees nothing wrong with the government’s plan to put up new coal-fired power plants to boost power supply in the country.

“You open the Philippines for all power players, I guarantee you the electricity will become cheaper,” he pointed out.

The President said  in January that building more coal-fired power plants is necessary to meet the nation’s growing energy needs and for the Philippines to stay competitive in attracting foreign investors.

These pronouncements of President Duterte delighted residents and officials of the municipality of Sual following a report that a multi-national company, Korean Electric Power Corporation, is keen on putting up another coal-fired-power plant in their town that would produce 1,000 megawatts.

The company, the report said, will be using ultra-supercritical combustion technology that greatly reduces pollution, as prescribed by the President.

In welcoming the entry of another power plant in their locality, Sual residents said this would mean hundreds of jobs for the people and millions of pesos of additional revenues for the municipality.

Additional power plants would also mean stable supply of electricity at cheaper price and less brownouts, they said. (P.R News)