TUCP warns of higher power rate

MANILA, Philippines - Labor and business groups have expressed concerns that the price of electricity will go up next year if the government fails to avert the power crisis.

In a statement, the Trade Union Congress of the Philippines (TUCP) said Luzon households would pay up to P1,600 to P1,800 in their monthly bills.

The group urged Energy Secretary Carlos Jericho Petilla to come up with a timetable for transparent consultations this month with the Joint Congressional Power Commission (JCPC), the Energy Regulatory Commission (ERC), small and medium enterprises (SMEs), power sector players, economic cluster of the cabinet, business and labor and the consumers on how to solve the crisis without shooting up the costs.

The Philippine Chamber of Commerce and Industry (PCCI) said addressing the 2015 shortage is just part of the problem and that there must be a comprehensive set of policies and strategies to factor in El Nino, a repeat crisis in 2016, the lack of competition in a power deficit situation, and the need to bring power rates down.

“We remind all that what we face is not just a supply problem but a cost problem.  If we are not competitive in ASEAN we will lose out.  Jobs will be lost and no new jobs will be created,” said Alan Tanjusay, TUCP spokesperson.

Petilla has warned of a power supply shortfall by March to May 2015 if the projected demand of 9,011 megawatts for the next year is not met. He forecasts a power shortage of 500 MW.

As a solution, Petilla is planning to rent bunker-run power barges for two to three years.