The Energy Regulatory Commission (ERC) revealed on Thursday that power rates in the Philippines are expected to gradually decrease in the coming months. This announcement was made by ERC chairperson Monalisa Dimalanta during a joint congressional energy commission hearing. When asked about the future decrease in power rates by Bataan Representative Albert Garcia, Dimalanta confirmed that the decrease is expected due to the softening of global coal prices. However, she noted that despite the decrease in coal prices, power rates are dropping at a slower rate. Dimalanta mentioned that the exchange rate may be a factor in the slower decrease, as coal is imported.
During the hearing, Senator Raffy Tulfo inquired about alternative coal sources in the event that Indonesia, the country’s main source of coal, faces any issues. Department of Energy Secretary Raphael Lotilla responded by stating that Russia, South Africa, and Australia are potential alternative sources of coal. Lotilla also emphasized the need to diversify the sources of power and energy in the Philippines to reduce dependence on a single source.
The ERC’s announcement brings hope for consumers who have been dealing with high power rates, particularly during the summer months when demand is high. As global coal prices continue to decrease, the ERC expects power rates to follow suit, although at a slower rate. The commission is currently studying the reasons behind this slower decrease, considering factors such as the exchange rate.
