The rising cost of electricity

From Herman Tiu Laurel:

Glenn Westerman of the Mactan Export Processing Zone Exporters and Manufacturers Chamber of Commerce provides a quotation sent to us by radio broadcaster Popo Villanueva, “US power rates average $0.04 per kilowatt hour, while in the Philippines we are paying $0.10 per kilowatt hour.” Therefore, according to Westerman, Philippine power cost at an average of P5.60/kwh is 150 percent higher than the US at P2.24/kwh. With this kind of power cost here how can we expect to be competitive in any product? These margins are attracting all the energy pirates to us.

This is not good. And here's more bad news.

The Energy Regulatory Commission yesterday approved a 40 percent increase in the charges of debt-ridden National Power Corp. starting the end of September.

The increase is P1.2318 per kilowatt-hour in Luzon, 22.02 centavos in the Visayas and 26.65 in Mindanao, for an average of 97.98 centavos.

The increase, effective Sept. 26, raises the average charge to P3.442 centavos from P2.44. Napocor had been seeking an average increase of P1.87.

No relief talaga for the hardworking middle class consumers. But that's not all.

Sen. Serge Osmena warned us to expect 2 more additional power rate hikes next year:

Sen. Sergio Osmeña III yesterday warned power rates would go even higher by
year's end when the Energy Regulatory Commission is expected to grant the
National Power Corp. (Napocor) an additional 98 centavos per kilowatt hour in
generation charges.

He added that's not all.

"There would be more increases next year, siguro mga dalawa pa, for a total of an estimated P4 per kilowatt hour additional rate cost. Chop-chop lang ang pagbigay ng increase para hindi masyadong mabigat."

He said even with the two additional increases, Napocor would still not be able to recover its projected net loss of P106 billion.

And the hits keep piling on to the poor Filipino consumers...