Private distribution utilities have demonstrated a consistent advantage over electric cooperatives in terms of lower electricity rates, according to the Department of Energy (DOE).
In a recent presentation at an energy conference, DOE Undersecretary Rowena Guevara shed light on a significant decline in electricity rates observed from March to August.
Guevara emphasized regional disparities in electricity rates within the Philippines.
She noted that in Luzon, rates are notably lower than the national average, while the Visayas region experiences rates that exceed the national average. However, Mindanao stands out as having the lowest rates among private utilities nationwide.
One key factor contributing to this trend, according to Guevara, is the decreasing price of fossil fuels like coal and natural gas. This decline in fuel prices has translated into reduced electricity costs for consumers, bolstering the affordability of electricity.
When comparing electric cooperatives, the pattern is distinct. Mindanao records the highest electricity rates among electric cooperatives, followed by Luzon, while Visayas boasts the lowest rate within this category.
Guevara noted that the ERC has made the database of electricity rates accessible to consumers, empowering them with vital information about the performance of their respective distribution utility companies.