ONE of the most popular issues discussed when candidates meet the people in political campaign rallies masquerading as consultation is the high electricity rates.
The price of electricity in the Philippines has consistently been among the highest in Southeast Asia, thus worsening poverty among low-income communities. While Meralco announced a rate reduction by P0.0746 per kilowatt hour, this translates to a monthly rate of P9.7027 per kWh, which is still high compared to our regional neighbors. Given the poor have to pay a high proportion of their income to settle their electricity bills, they have less money to save or to spend for other essential needs such as food, medical care and education.
An apartment owner in the University Belt whose student-tenants have vacated their units because of COVID’s closure of schools complains that Meralco has been charging the following rates for zero consumption from last April to December: 5.60, 5.65, 16.95 and 22.60. And that’s for not using their electricity!
‘In many instances, private cooperatives and distributors are better managed than government-controlled ones, which have to grapple with politics that drag down their operations.’
Making electricity accessible and affordable to all Filipinos should be a priority by our politicians, both national and local. Unfortunately, it doesn’t feel like the government sees this as an urgent issue to resolve given the lack of long-term reforms in our energy system.
Several national candidates have come out in public airing their proposals on this issue which is close to the heart of Filipinos. Presidential bet Isko Moreno said he wants government to subsidize electricity used by poor households. Atty. Chel Diokno wants a more vigorous shift to renewable energy in the country to lower power rates. He lamented that consumers are always at the losing end because of “regulatory capture” or the propensity of government regulators to favor big businesses involved in power generation and distribution.
Diokno’s most sensible proposal is to “remove politics from our electric cooperatives and allow them as well to be producers of renewable energy which they can give to those in their areas of franchise.”
Congress is actually starting to do what the former Dela Salle law dean is proposing. Awaiting action in the House of Representatives is House Bill No. 10554 which is endorsed by local officials of Davao del Norte. Should the bill become a law, the local government units of Tagum City, the Island Garden City of Samal, and the towns of New Corella, Kapalong, San Isidro and Talaingod will be allowed to get their electricity from providers other than the government-owned Nordeco, which they say charges P3 per kWh more compared to nearby towns and is prone to hours-long brownouts.
Solar panel technology has allowed ordinary people to produce their own electricity for use, and even for resell to the grid. Also, the dismantling of power monopolies that led to the open market in electricity is really intended to help the masses of Filipino consumers. In many instances, private cooperatives and distributors are better managed than government-controlled ones, which have to grapple with politics that drag down their operations.
Every small step towards making electricity accessible to all and at a lower price should be considered.
