Senate President Sherwin T. Gatchalian urged the Energy Regulatory Commission (ERC) to stagger electricity price increases and boost fuel audits of power producers to cushion consumers from rising energy costs.
During a Senate Energy Committee hearing on proposed changes to the Electric Power Industry Reform Act’s lifeline rate provisions, Mr. Gatchalian said households were already burdened by higher fuel prices and transport fares.
“Our countrymen are already struggling because of the rising price of oil and the increase in transportation fares,” he said in Filipino. “Now, electricity prices will also increase. One of the measures we can do is to stagger the price hike.”
The Philippines has the highest electricity rates among Association of Southeast Asian Nations member states, attributed to insufficient power supply, particularly in the Visayas, where yellow alerts have become frequent.
Mr. Gatchalian also pressed the ERC to resume fuel audits of generation companies to ensure that only justified fuel costs are passed on to consumers.
ERC Chairman Francis Saturnino C. Juan stated that the commission conducted audits during the recent conflict, but many power producers invoked confidentiality clauses in their fuel supply contracts and refused to disclose pricing information.
The lack of regular fuel audits could allow generation companies to quickly pass higher fuel costs on to consumers while delaying price reductions, according to Mr. Gatchalian.
Residential electricity rates reached P16.57 per kilowatt-hour in on-grid areas in June, while rates in off-grid areas relying on oil-fired generation climbed to P24.92 per kilowatt-hour.
The Philippines has faced elevated fuel costs since recent hostilities erupted, with diesel prices at one point reaching P170 per liter.
Recent price increases have added to the burden, with pump prices increasing by as much as P3.65 per liter for gasoline, P10.68 for diesel and P11.77 for kerosene.
