Power rates ease amid high oil costs
By Maria Romero – February 14, 2022 02:55 AM
@tribunephl_mbr
It’s not just the motorists who are bearing the brunt, but also other industries whose cost of production and operations are affected by higher oil prices
Despite the series of price increases on fuel products, February power bills will be reduced which is a welcome reprieve for consumers.
Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan (AGHAM) president Angelo Palmones over the weekend said Manila Electric Company’s (Meralco) close to 12 centavos cut in electricity bills provided a much needed economic relief to consumers who are pummeled by a global health crisis.
The rate adjustment translated to a P24 cut for every household consuming 200 kWh and as much as P56 for those consuming 500 kWh, for a cumulative bill reduction of P39 since the start of the year.
“Usually, when oil prices go up, the cost of electricity also increases since power plants that supply to Meralco are also affected by movements of global fuel prices,” Palmones said.
Generation charge eases
“A look at the breakdown of Meralco’s rate reduction this month showed that its generation charge went down by 23 centavos, owing to its strategic sourcing from suppliers that somehow protected its customers from price spikes,” he added.
While this is good news, AGHAM reiterated the importance of implementing long-term solutions that will protect consumers from the volatility of global prices.
As an oil-importing country, the Philippines is exposed to uncertainties of international oil prices, which have been rising due to disparity in supply and demand, and the geopolitical tensions between Russia and Ukraine.
“Fuel prices are continuously increasing and consumers are left with no choice but to pay more for oil. It’s not just the motorists who are bearing the brunt, but also other industries whose cost of production and operations are affected by higher oil prices,” AGHAM said.
In anticipation of the conflict, Energy Secretary Alfonso Cusi said he convened a preparatory meeting last 3 February with refiners, importers, and own users to discuss the Directive of the Department of Energy in ensuring that individual oil companies have secured supply contracts in 2022.
Cusi strictly mandated oil companies to secure full-year supply contracts of crude oil for refinery and finished petroleum products for all importers.
The Energy chief also required them to come up with reasonable prices of these supply contracts protected from the possible high uptick of prices due to this global oil supply disruption.
