00:00Many were surprised by their electric bill for heating.
00:04But back then, the Philippines was one of the most expensive countries in Southeast Asia.
00:10But did you know that there are provinces where electricity is cheap?
00:15How is it priced? And can the government do something about it?
00:19Let's find out in the special report of Bernadette Reyes.
00:22Air-conditioning is not available for almost 24 hours.
00:31Ventilators, electricity, refrigerators, washing machines, and other appliances are still in use.
00:36But this month's bill for Parang Maguindanao del Norte is less than P7,000 per month.
00:44In that case, the consumption of the house of the owner is also included.
00:48Air-conditioning is not available for almost 24 hours.
00:52There are people who have to go to work at 12 o'clock.
00:56They have to use electricity, air-conditioning, and water.
01:02In the house of Zainab in Maguindanao del Sur,
01:04the bill for her house and sari-sari store is more than P800.
01:11The electric fan is only available for 24 hours.
01:14It's hot inside our house because we don't have air-conditioning.
01:20The bill is only P6 per kilowatt-hour in their province.
01:25The power distributors in each province are different.
01:29They each get their own supply of electricity.
01:32Maguindanao Electric Co-operative or Magelco, for example,
01:35they only get their supply from the Power Sector Assets and Liabilities Management, or PISAM,
01:41which is why the price is cheaper.
01:43We are the cheapest in the entire Philippines because we have only one power supplier,
01:49and that is PISAM because it is a government-owned company.
01:52We are a hydro company.
01:53We only have P6 in the residential area,
01:56and P5.5 in the industrial area and also the commercial area.
02:03DOE explains that in any product or service,
02:06as long as there is a lot of supply in demand, like in Mindanao,
02:09the price will definitely go down.
02:12There is a big surplus of plants in the needs of Mindanao.
02:17Of course, there was a projection that Mindanao's demand should be this high.
02:23So, the number of plants is also this high.
02:26However, there was a pandemic and the demand was only here.
02:31It was not able to meet the supply.
02:33So, we now have excess supply in Mindanao.
02:37In other places, it is just a matter of passing it on.
02:39The Meralco Power Distributor in Metro Manila, for example,
02:43has a shortage of more than P11 per kilowatt hour.
02:46Our sourcing strategy is really based on what we technically term as the least cost possible.
02:53This means that when we enter the contracts under the competitive selection process,
02:58it is a form of bidding.
03:00Our suppliers will lower the price.
03:05In Nueva Vizcaya, there is a shortage of more than P11 per kilowatt hour.
03:10Whatever we buy from the power generator,
03:12that is what we sell to our member consumers.
03:17It is also stated in the contract that if there is a turnover in the market,
03:21they have the right to increase their price.
03:27At present, in Aurora, the price of electricity is the highest in the country.
03:31The price of electricity that is being purchased by power distributors
03:34depends on the type of power plant that produces electricity.
03:39In the Philippines, 78% of electricity comes from fossil fuels such as coal and liquefied natural gas.
03:4522% comes from renewables such as solar, hydro, and wind.
03:50That is why the price of fossil fuels in the world market is low,
03:54but the price of electricity in the country is high.
03:56This is the reason for our international conflicts,
04:00particularly the conflict in Europe.
04:03Because of the shortage of supply, we had a tight supply.
04:09All liquid fuels and even our coal fuels were affected.
04:14Compared to other countries in Southeast Asia,
04:17electricity is one of the most expensive in the Philippines.
04:20Residential rates are even higher in the Philippines compared to modern countries like Singapore.
04:25One of the main reasons why electricity is cheaper in other countries
04:30is the subsidy that their governments provide.
04:33That is what is happening in other countries, the direct government subsidy.
04:37Here in the Philippines, because the generation is partly deregulated,
04:42it means that our private sector has a right to be contracted.
04:48The Department of Energy continues to cooperate with energy stakeholders
04:53to lower the price of electricity in the country.
04:56From the plants that produce electricity,
04:58to the grid that delivers electricity to electric cooperatives and distribution utilities,
05:03to the one that delivers electricity to each consumer.
05:06For GMA Integrated News, Bernadette Reyes, Nakatuto, 24 Horas.
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