The country’s electricity rates are likely to decline by up to P3 per kilowatt-hour (kWh) by 2030 if upcoming power projects are switched on as planned, according to the Department of Energy (DOE).
Citing simulation results, Energy Secretary Sharon Garin told lawmakers that power bills could go down by ‘P2 to P3 per kWh’ if private developers execute all 200 proposed conventional and renewable energy projects on schedule.
‘This is assuming that all the green energy auction projects are delivered and all the fossil-based (projects) are also delivered,’ she said during a Commission on Appointments hearing.
Garin affirmed the DOE’s commitment to ensuring the timely and successful completion of these projects.
‘What we have to do is coordinate with all the agencies that are part of the permitting process and also with the local government units. We are practically handholding the process to make sure we address the problem or hasten the procedure,’ she said.
The Philippines had the second-highest electricity rates in Southeast Asia in 2022, trailing only Singapore, according to a report by the Philippine Center for Investigative Journalism.
In Metro Manila alone, power prices currently average around P13 per kWh, notably higher than the ‘less than P11’ rates seen in other neighboring countries, Garin said.
‘Our electricity is not subsidized. In fact, it’s even taxed. So those are issues that don’t give us a competitive advantage with the other countries,’ the DOE secretary said.
Based on DOE data in 2024, government subsidies in other Southeast Asian countries covered 36 to 66 percent of electricity costs.
In the Philippines, Energy Undersecretary Rowena Cristina Guevara earlier said a government subsidy for household consumers ‘is not possible,’ stating ‘we don’t do that unlike other countries.’
Aside from lowering power rates, Garin said the DOE was also aiming to achieve total household electrification within the next three years.
Garin estimates that the Marcos administration would need around P57.86 billion to electrify the remaining 3.17 million households by 2028.
‘We have the line extension, the solar home systems and the microgrid system. We’re trying to find a way to also (reach the target) without the budget,’ she said.