To electrify 100 percent of Philippine households by 2028 (note the timetable is headed for a presidential election), the Department of Energy (DOE) would need P72 billion more funds.
This was explained by DOE Undersecretary Rowena Cristina Guevara at the 16th Media Seminar hosted by the US Embassy, as over two million households still are in the dark because of no electricity.
She said a collaboration with the National Electrification Administration electric coops and the National Power Corp. would meet the presidential order to electrify by 2028.
A joint study by the DOE and the Philippine Statistics Authority forecasts that total electrification could yield an economic impact of P315 billion, equivalent to around 1.8 percent of the country’s Gross National Product (GDP), reported business blog site, Bilyonaryo.
Guevara highlighted the economic benefits in terms of potential income increases of up to 49.4 percent with expanded electricity access.
As of March 2024, DOE data showed the electrification coverage at 93.12 percent of households nationwide with two million still not covered.
Guevara said financing by the Asian Development Bank (ADB) or the World Bank (WB) is being studied.
The P72 billion is the total funding requirement for this project but the government plans to supplement this with annual budget allocations ranging from P3 to P5 billion for the electrification program.
Rising costs
Meantime, those currently served by electrification – the urban centers – are seeking the help of President Ferdinand Marcos Jr. amid rising power bills.
The Power for People Coalition (P4P) petitioned the president to investigate the Energy Regulatory Commission (ERC) for its alleged failure to prevent the power industry from significantly increasing electricity rates.
In a letter sent on Friday, the P4P highlighted concerns over the ERC’s delays in implementing a regulatory rate reset for distribution utilities and investigating power supply agreements (PSAs) and spot market issues.
P4P convenor Gerry Arances is calling for the scrutiny of current and former commissioners, citing social media posts suggesting Commissioner Marko Romeo Lizada Fuentes continues to practice professionally.
He emphasized the impact of these delays, saying consumers paid a 14.97 percent rate of return instead of the 8.27 percent intended from July 2016 to June 2019, potentially amounting to P150 billion owed to consumers by Meralco as of December 2023.
The letter also urged Marcos to probe the ERC’s handling of the National Grid Corporation of the Philippines’ rate reset during the Fourth Regulatory Period and to conduct lifestyle checks on commissioners.
It raised concerns about the ERC’s alleged favoritism towards entities like Meralco, particularly in their acquisition of stakes in energy plants, and its apparent preference for fossil fuels over renewable energy options.
The P4P emphasized the urgency for the President’s office to uphold laws addressing escalating electricity prices, underscoring the ERC’s pivotal role in these matters.
“We urge your good Office, consistent with its constitutional mandate, to ensure the faithful execution of laws to address the surging prices of electricity, a significant burden on every Filipino family. At the core of this all-encompassing and far-reaching issue is the ERC,” the letter-complaint said.
Photo Courtesy : Philippine News Agency
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