Generation charge fell 11% in 2024—ERC
By Alena Mae S. Flores – February 13, 2025, 7:35 pm
from manilastandard.net
The Energy Regulatory Commission (ERC) said Thursday the national average annual generation rate dropped 11.46 percent from to P6.64 per kWh in 2024 from P7.50 per kWh in 2023.
The ERC said in a statement that while generation rates remained above the 2019 pre-pandemic levels, power costs adjusted significantly from their 2022 peak when the average rate jumped to P8 per kWh.
It said that despite temporary power cost surge during the summer months of 2024, generation rates normalized by yearend.
The ERC said it observed that most areas in the Philippines, except for select regions, saw a significant cut in generation rates in 2024, based on reports from distribution utilities (DUs) and monitored prices in the Wholesale Electricity Spot Market (WESM).
“The ERC continues to validate the reports received from more than 120 DUs all over the country to ensure that only just and reasonable costs are passed on to our consumers,” said ERC chairperson and chief executive Monalisa Dimalanta.
“Diligence in power supply procurement and optimal dispatch of suppliers to ensure least cost pricing are critical obligations of DUs to their captive customers. The ERC will continue to enforce its regulatory authority to ensure these obligations are upheld,” it said.
ERC said all island groups enjoyed lower power costs last year, led by Mindanao with 14.9 percent decrease in yearly average generation rates, followed by Luzon (11.7 percent) and Visayas (7.3 percent).
It said all regions in Mindanao posted a double-digit cut in average power cost except for BARMM, which saw a 14.6 percent hike last year.
The ERC said most regions in Luzon also recorded cuts in electricity cost except for MIMAROPA, where off-grid distributors faced 15.7 percent higher generation rate.
Meanwhile, it said that in Visayas, only Region VI experienced higher power rates with a moderate 2.3 percent adjustment.
The ERC said the relative stability of electricity prices aligns with the downward trend of coal prices in the international market.
It said that with coal still being the dominant fuel in the Philippine power mix, the country relies heavily on Indonesian coal, which dropped from its record yearly average price of $276.6 per metric ton (MT) in 2022 to $121.5 per MT in 2024.
