Here’s good news for consumers.
Government investments in the power industry will help lower electricity costs in the Philippines, according to Maharlika Investment Corp. (MIC) President and CEO Rafael Consing and Department of Energy (DOE) Secretary Raphael Lotilla.
Speaking at a joint press briefing in Malacañang on Tuesday, Consing and Lotilla discussed how investments in the power sector, mainly through the MIC, will improve the country’s transmission infrastructure, resulting in reduced electricity bills.
The MIC recently invested by acquiring a 20 percent stake in the National Grid Corporation of the Philippines (NGCP). Consing said the MIC plans to support the NGCP by undertaking energy development projects.
Consing said the NGCP’s transmission grid rollout would allow more power players to supply electricity, which could ultimately lower electricity prices.
For his part, Lotilla explained that transmission projects will help reduce electricity rates by addressing supply constraints.
“After a transmission project is finished, it can actually contribute to lowering prices because it addresses the constraints, the transmission constraints that drive prices up,” Lotilla said.
“As we rollout more of these projects, then mas lalong walang balakid sa pag-supply ng kuryente,” he added.
Lotilla cited the recently completed Mindanao-Visayas Interconnection Project as an example of how improved transmission infrastructure can reduce costs.
“Naalala ninyo, iyong Mindanao-Visayas Interconnection Project ay natapos lamang nitong 2024 at ang epekto nito ay ang wholesale electricity spot market prices natin ay actually bumaba dahil natapos iyong interconnection,” Lotilla said.
He noted specific decreases in spot market prices, reporting a price drop of PhP1.99 per kilowatt-hour (kWh) in Luzon, PhP1.77 in the Visayas, and PhP1.30 in Mindanao. |
