00:00 The electricity bill will increase in the middle of the high demand even if there is a gap in its price if there is a red alert.
00:09 So, the Energy Regulatory Commission should talk to distribution utilities like Meralco to make the increase of electricity bill more effective.
00:17 Sandra Aguinaldo was on the spot.
00:22 From Php 1,800 in January, the electric bill of Rose became Php 3,000 in March and increased to Php 4,000 in April.
00:33 Our consumption, food and other expenses are reduced. We are cutting it to save electricity.
00:45 But the calamity of Rose and many Filipinos is not yet over.
00:49 This April, several times, the National Grid Corporation of the Philippines declared yellow and red alerts in Luzon, Visayas and Mindanao
00:58 due to the low supply of electricity.
01:00 The increase of demand for electricity was accompanied by the replacement of some plants.
01:06 It is expected that our large hydros will be gone.
01:09 What we did not expect, even the coal and natural gas, suddenly disappeared.
01:14 The reason why we did not have system-wide blackouts is our diesel plants.
01:22 We know that the fuel of diesel plants is more expensive.
01:27 That is why the price of electricity in WESEM or Wholesale Electricity Spot Market,
01:32 which is one of the places where different distribution utilities like Meralco and electric cooperatives are buying electricity,
01:40 is increasing in different parts of the country. According to the Energy Regulatory Commission or ERC,
01:46 this can be felt in our upcoming electric bill.
01:49 If there is an increase, we cannot estimate how high it is because the prices of our 141 distribution utilities in the country are different.
02:00 We need to monitor the increase of our utilities that are fully exposed to WESEM, 100%.
02:12 WESEM is a means of trading electricity between buyers and sellers.
02:18 If the supply is high, the price of electricity goes down and if the supply is low, it becomes expensive.
02:24 Today, the LGCT declared a yellow alert in Luzon Grid between 3 and 4 p.m. due to the low supply.
02:34 The low supply of electricity is normal during summer months.
02:38 But this year, the declaration of yellow and red alert is more frequent.
02:44 So in order to protect consumers, the price of WESEM will be suspended if the red alert is declared.
02:53 The Energy Regulatory Commission or ERC has moved to temporarily suspend the operation of the so-called Wholesale Electricity Spot Market or WESEM
03:06 if the red alert is declared.
03:09 If the ERC clarifies, electricity can still be bought in WESEM, but the administered price set by the ERC will be removed.
03:17 There is also a secondary price cap to limit the high price.
03:22 Because the increase of electric bills in May is still expected, the ERC is talking to distribution utilities if they can stop the customers.
03:32 The Meralco, although it has other sources of electricity besides WESEM, is looking for a way to avoid the heavy burden of their customers.
03:41 The prior supply month, which is April, will have an impact on the bills for May.
03:49 Historically, if there is a sudden surge in the price of electricity, we have always been proactive in seeking ways to cushion or manage the impact,
04:04 even if there are significant rate adjustments.
04:09 The ERC admitted that this is a simple solution.
04:13 What it needs is to increase the supply of electricity in the country to lower the price.
04:19 For GMA Integrated News, Sandra Aguinaldo, for Tutok 24 Horas.
04:25 .
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