How to Cut the Country’s Electricity Prices, According to Experts
- February 4, 2025
Blackouts marked both ends of 2024. In January, a four-day outage in Panay Island disrupted businesses and caused ₱3.8 billion in losses in Iloilo alone. On December 1, a submarine cable fault led to a prolonged power outage in Siargao and Bucas Grande Islands, resulting in a state of calamity.
2025 seemed no different, as Tacloban City faced a 10-hour power outage caused by a cut power line that disrupted New Year celebrations.
Unless action is taken, the situation will likely worsen, especially with the growing economy and increasing energy demands. Recently, Department of Energy (DOE) Secretary Raphael Lotilla estimated a 5.4% rise in Luzon, a 16% rise in the Visayas, and an 8.2% increase in Mindanao.
Experts weigh in on how to cut electricity costs
While a stable and reliable energy supply is essential for the economy, power affordability is equally critical. High energy costs can strain households and businesses, affecting both consumer spending and industrial output, which may limit overall economic growth. To reduce electricity costs nationwide, here are some expert-backed strategies:
Increasing transmission lines
Transmission in electricity involves moving power from plants to substations via high-voltage lines, where it is then stepped down for distribution. In the Philippines, the National Grid Corporation of the Philippines (NGCP) manages this process.
Recently, the government-driven Maharlika Investment Corporation (MIC) acquired a 20% stake in the NGCP to fast-track the country’s transmission efforts.
In its social media post, DOE stated that the reason for MIC’s investment is to improve the NGCP’s projects, as 98% of its initiatives between 2016 and 2024 faced delays. The post further highlighted that if transmission projects, such as the Cebu-Negros-Panay 3, Mindanao-Visayas Interconnection, Mariveles-Hermosa, and Cebu-Bohol projects, had been completed on time, not only would blackouts have been avoided, but electricity prices could have also been reduced.
(Also read: DOE: Rising Electricity Prices Could Have Been Avoided)
Focusing on power generation
Petronilo Ilagan, former DOE Undersecretary and National Association of Electricity Consumers for Reforms Inc. (NASECORE), pointed out that the main issue in the energy sector is power generation. He argued that the government should increase its investment in this area to foster competition, potentially lowering costs and improving services.
Ilagan also noted that electricity bills typically rise from April to May due to supply shortages and outages in outdated power plants. “This dependency on spot market purchases highlights the urgent need for additional power generation capacity to stabilize supply and manage costs,” he stated.
Harnessing renewable energy
The Philippine Energy Plan 2023-2050 focuses on securing a reliable, sustainable, and affordable energy future. Key goals include increasing renewable energy’s share of the power generation mix to 35% by 2030 and 50% by 2040. Renewable energy can lower electricity costs by reducing the country’s dependence on imported fuels, subject to price fluctuations.
While renewable energy sources like solar and wind become more affordable over time, their initial installation costs are high.
At the 15th session of the International Renewable Energy Agency (IRENA) Assembly, DOE Undersecretary Rowena Cristina L. Guevara highlighted the need to lower investment costs for renewable energy projects. She said that an affordable energy transition is vital for ensuring the shift to renewable sources is equitable and accessible to all.
“At the end of the day, in order for the energy transition to be just, we need to afford the electricity generated from renewable energy,” noted Guevara. “But in order for that to happen, we hope our partners would be able to address the financing gap.”
Recognizing the role of transitional fuels
In his opinion article, Orlando Oxales, Lead Convenor of the consumer group CitizenWatch, acknowledges the potential of renewable energy sources. “But let’s be real,” he stated. “Transitioning to renewable energy isn’t going to happen overnight.” He also suggested using natural gas as a transitional fuel to bridge the gap while working towards cleaner energy alternatives.
Meanwhile, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, cautioned that relying solely on intermittent sources like wind and solar power could lead to frequent power outages. He pointed out that in 2022, wind and solar accounted for just 2.6% of the country’s electricity generation, while coal provided 57.7%, highlighting the country’s significant reliance on coal for its energy needs.
Due to the substantial expense of renewable energy infrastructure, Terry Ridon, a public analyst from InfraWatch PH, warned that “the nation cannot yet dispense with baseload technologies such as coal, oil, and gas, without incurring significant energy costs detrimental to the public.”
A holistic approach
Oxales stressed that energy reforms must address the entire value chain, including generation, transmission, and distribution.
“It’s time for policymakers, energy providers, and investors to work together with the end goal in mind: empowering the Philippine ecosystem with stable energy to accelerate and sustain economic velocity,” he said. “Whether it’s through smarter grid management, stronger regulatory oversight, embracing innovative renewable technologies, every effort should be geared towards making energy available to all.”
Sources:
https://mindanews.com/top-stories/2024/12/siargao-bucas-grande-islands-under-state-of-calamity-amid-ongoing-power-outage/
https://business.inquirer.net/501009/renewables-dominate-pipeline-of-new-power-projects-in-2025
https://www.pna.gov.ph/articles/1242753
https://bilyonaryo.com/2025/01/24/maharlika-urged-to-shift-focus-invest-in-power-generation-not-ngcp-stake/power/
https://www.facebook.com/DOEgovph/posts/ 𝐔𝐧𝐝𝐞𝐫𝐬𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐲-𝐑𝐨𝐰𝐞𝐧𝐚-𝐂𝐫𝐢𝐬𝐭𝐢𝐧𝐚-𝐋-𝐆𝐮𝐞𝐯𝐚𝐫𝐚-𝐀𝐝𝐯𝐨𝐜𝐚𝐭𝐞𝐬-𝐟𝐨𝐫-𝐀𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐥𝐞-𝐑𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞-𝐄𝐧𝐞𝐫/1137901498126431/
https://www.facebook.com/story.php?story_fbid=1147775097139071&id=100057197750633&rdid=QkyM0Hf3oGW5jL8N
