CEBU needs to be more competitive in terms of power costs, as the business community pushes for the lowering of the cost of doing business.
Cebu Chamber of Commerce and Industry (CCCI) president Virgilio Espeleta said businesses have long been challenged with high power costs in the country as part of their major hurdles.
“In line with our advocacy on ease and lowering the cost of doing business in Cebu, we decided to hold a forum that will center on our country’s challenges pertaining to the power and energy sector. Businesses and consumers have long complained of the high cost of electricity in the Philippines. As of 2018, the Philippines’ average electricity price is the second highest in Asia,” he said at a CCCI-organized energy forum attended by more than 70 of its member companies.
Espeleta said the forum was aimed at giving businesses an idea on their power costs and how they can save through the retail energy supplier (RES) system.
He said businesses can shift from their traditional distribution utility to an RES to save on costs.
Espeleta cited data presented by International Energy Consultants managing director and lead consultant Dr. John Morris, ranking the Philippines among the top five Asian countries with the highest power rates surveyed.
These are Japan (P12.31 per kilowatt hour); Philippines (P8.96 per kWh); Singapore (P8.83 per kWh); Hong Kong (P6.53 per kWh); and Thailand (P6.23 per kWh).
In the Philippines, a study done by the Freedom from Debt Coalition also revealed the cities with the highest residential electricity rates in 2018 were Iloilo City (P12.09 per kWh); Bacolod City (P11.86 per kWh); Cebu City (P11.7286 per kWh); General Santos City (P10.21 per kWh); Davao City (P10.12 per kWh); Tacloban City (P8.94 per kWh); and the National Capital Region (P8.38 per kWh).
“In pricing electricity, it’s the final consumer who ultimately shoulders three costs: distribution, transmission and power generation. This is worsened by the fact that our gross domestic product is low relative to the average price of electricity, which means electricity eats up a disproportionately large part of our income,” he said.
CCCI past president Consul Antonio Chiu said there is a need for Cebu to be competitive particularly in power rates.
“We need to be more efficient. The more efficient you are, the more it will generate businesses that will help Cebu grow,” he said.
A company president who asked not to be named attested at the forum that he managed to save 30 percent on his total power cost after shifting to an RES. (JOB)