A CONSUMER advocacy group is urging households and micro-entrepreneurs to adopt small-scale solar solutions as electricity demand surges and global fuel prices climb.
Cebu Electricity Rights Advocates (Cera) convenor Nathaniel Chua warned of a “perfect storm” driven by extreme summer heat, rising electricity consumption, and geopolitical tensions, including the ongoing conflict in Iran, which could push power rates to near-record levels.
“We are facing a period of unprecedented volatility,” Chua said, noting that higher cooling demand and surging fuel costs are already translating into elevated electricity bills.
To cushion the impact, Cera is promoting a “solar micro-shift,” encouraging the use of affordable, standalone solar kits to reduce reliance on the grid during peak hours.
The group said there are 20-watt solar lighting kits available in the market priced as low as P450 that can be a low-cost option for street vendors, sari-sari store owners, and low-income households. These systems can provide up to 10 hours of lighting after a full day’s charge and recover costs in less than two months through savings on electricity.
There are also solar-powered DC fans priced as low as P1,499 that can run for up to 10 hours without adding to monthly power bills.
Chua said such solutions offer immediate relief for small businesses and households facing rising costs, while also providing backup during brownouts.
Cera added that wider adoption of solar lighting and appliances could help reduce peak demand, particularly at night when utilities rely on more expensive supply from the Wholesale Electricity Spot Market. Lower peak demand could help temper price spikes that typically increase monthly bills by 15 percent to 20 percent during high-demand periods.
Reduced strain on the grid may also help prevent voltage instability and rotational brownouts, the group said.
New baseload
power plants needed
However, Cera emphasized that small-scale solar systems are only a temporary measure, underscoring the need for long-term investments in baseload power.
“Solar is first aid, but Cebu urgently needs new baseload power plants to ensure long-term reliability and price stability,” Chua said.
Electricity demand in Cebu is growing by around 150 megawatts annually, while continued reliance on imported power leaves the province vulnerable to supply disruptions.
The group also warned that rising global fuel prices, driven in part by tensions in the Middle East, will directly affect Philippine electricity rates, with more than 80 percent of generation dependent on coal, natural gas, and oil.
“These global price shocks are passed directly to consumers,” Chua said. “When fuel prices rise, electricity rates follow.”
Cera called on the Department of Energy and the Energy Regulatory Commission to implement measures to protect consumers, including accelerating baseload capacity development, exploring staggered billing, reviewing non-essential charges, and supporting proposals to remove value-added tax on electricity.
With the dry season expected to drive higher consumption, Cera urged consumers to conserve energy and consider alternative solutions.
“The next billing cycles could be among the highest we have seen,” Chua said. / KOC