Philippine power costs ranked 9th most expensive

Its nice to know the cost of power is not the most expensive only the 9th most expensive. Perfect opportunities for an energy efficiency venture.

From BusinessWorld Philippines

August 16, 2012

Meralco electricity ninth most expensive — survey

PHILIPPINE power rates, particularly those of Manila Electric Co. (Meralco), ranked as the ninth highest among 44 territories as of January, according to results of a survey presented during a hearing at the Senate yesterday of the Joint Congressional Power Commission on regional comparison of retail electricity prices.

The survey, conducted by Perth-based International Energy Consultants (IEC), identified the top 10 jurisdictions with most expensive power rates as Hawaii, Italy, Malta, Japan, Cyprus, Germany, Denmark, Netherlands, Philippines and Singapore. The Philippines was also cited as having the most expensive electricity in Southeast Asia.

“Meralco is comparable with Singapore, Australia, Netherlands and Denmark but significantly higher than several other countries within the Asia-Pacific Region which benefit from heavily subsidized rates,” IEC managing director and lead consultant John Morris said during the hearing.

In terms of commercial retail tariff, the Philippines ranked sixth among the 44 jurisdictions, with its $0.2043 per kilowatt hour (/kWh), exclusive of value added tax (VAT), 31% above the average among the 44 jurisdictions. The Philippines’ $0.1728/kWh industrial retail tariff was also sixth highest and 26% above the average, while its $0.2485/kWh residential retail tariff was 17th highest and 13% above average.

“Several neighboring countries like Thailand, Indonesia, Malaysia, Korea and Taiwan have average tariffs that are much lower than Meralco’s…due to government policies to provide subsidies of up to 50% to consumers,” Mr. Morris explained.

“IEC believes that providing subsidies via lower tariffs is bad economic practice and ultimately unsustainable. When subsidies are added back to retail tariffs, the true cost of electricity in these countires rises to a level that is much closer to Meralco’s,” he added. —Danessa O. Rivera

Article location : http://www.bworldonline.com/content.php?section=Economy&title=Meralco electricity ninth most expensive survey&id=56978

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