Energy Undersecretary Rowena Cristina Guevara says the country would need around Php 600 billion to provide energy subsidies and lower electricity costs nationwide.
In a report by Philippine Star, Guevara said that subsidizing electricity would cost around Php 587 billion and if such subsidies were implemented, the multi-billion-peso budget would come directly from taxpayers’ money.
Guevara also quoted a study by the International Energy Consultants, saying that Manila Electric Company’s (MERALCO) rates are significantly lower than the world average at 7%.
However, Filipino consumers feel a stronger impact from high power rates to those in Thailand, Taiwan, Vietnam, Malaysia, and Sri Lanka, where government subsidies shoulder 36% to 66% of energy costs.
To demonstrate, the Malaysian government owns Petronas, a global corporation with oversight of every oil and gas resource in the country, which means that the government subsidizes the price of their power.
Hence why the government has been aggressively pushing for renewable energy (RE), as reliance on fossil fuels increases electricity costs, and such transition would alleviate the increase in costs caused by fossil fuels, Guevara noted.
Meanwhile, the Department of Energy (DOE) has been urging all electric cooperatives and distribution utilities in the country to improve the dependability of the services they offer.
The government intends to accomplish upper middle-income status by 2025, which will result in increased demand for dependable power.
