The Energy Regulatory Commission (ERC) is actively considering consumer relief strategies as the peso continues to weaken, leading to higher electricity prices. ERC Chairman Francis Saturnino C. Juan revealed the agency is assessing how to mitigate the effects of this currency depreciation.
Peso Hits New Low, Fuels Energy Concerns
We are still studying what measures we can take to anticipate the increase in generation charges resulting from the depreciation of the peso.
Francis Saturnino C. Juan, ERC Chairman
The peso's recent drop to P64.17 per dollar represents a significant decline, exacerbating the already high costs for imported energy resources, including coal and natural gas. Given the Philippines' status as a net energy importer, these rising costs are expected to be passed on to consumers.
Juan explained that while the immediate impact of the peso's depreciation will affect generation charges, distribution rates will reflect changes over a longer period through a rate reset process. He emphasized that the most immediate effects will be seen in generation charge pass-throughs.
In response to the ongoing challenges, the ERC is implementing existing measures such as allowing staggered payment plans for electricity bills and preventing disconnections due to unpaid balances. Energy Secretary Sharon S. Garin plans to collaborate with the ERC to explore additional strategies to alleviate the financial burden on consumers.
Garin highlighted the difficult circumstances faced by the energy sector, stating, "We have the oil crisis. We have the currency depreciation. We have the El Niño and the coming summer. This is not the best time to be Energy Secretary, but we try as much as possible to minimize the impact."