Increase in Electricity Rates Inevitable – ACCESS

The Executive Committee of the Alliance of Concerned Consumers in Electricity and Social Services (ACCESS) issued an advisory to its members explaining, among others that the increase in the monthly electricity bills is inevitable due to the escalation of the war in the Middle East.

“The oil price surge means higher cost of electricity. Consumers should brace themselves for the impact. The government scrambles to mitigate the impact but options are limited. Officials says it’s a global issue, we cannot control the war,” Wennie Sancho, ACCESS President, said.

“Consumers need solutions, not explanations. Households must tighten their belts. Street vendors unplug lights, restaurants serve smaller portions. The war’s ripple effects affect everyone, he also said in a statement.

To mitigate the fallout, ACCESS he said is helping in the launching of the Consumers Energy Conservation Program to help households and businesses reduce consumption. “Save Energy, Save Money” Switch to LEDs, turn off standby appliances and use power-effecient air cons. Higher electricity rates affect households and businesses potentially leading to increased cost of living and production, he added.

“While the situation highlights the need for alternative energy sources, and the importance of diversifying energy and investing in renewables to ensure energy security and affordability, the Philippines Grid and Transmission Facilities managed by the National Grid Corporation of the Philippines (NGCP) face challenges in absorbing the influx of renewables due to their original design and infrastructure. The country’s energy mix is shifting towards renewables with the target of 35% by 2030 and 50% by 2040 but the challenge of limited grid capacity remains. The transmission grid lacks the sufficient capacity and advanced control to host large volume of variable renewables. While progress is being made, the grid’s readiness to absorb renewables without frequency disturbance remains as a major concern. Grid modernization and energy storage are advancing, but gaps remains, Sancho added.

“Meanwhile, the consumers have no choice but to find means and ways to ease the burden. ACCESS is urging the private distribution utilities and electric cooperatives to reduce the systems loss and for the DUs and ECs to hold town hall meetings in line with their social corporate responsibility to educate the consumers,” he also said.*