MANILA (July 21) — — Filipino households paid the highest residential electricity rates in Southeast Asia in June, with power costs reaching P12.43 per kilowatt-hour (kWh) amid tight electricity supply and strong demand during the dry season.
The figure was slightly higher than Singapore’s P12.34 per kWh, according to the Department of Energy (DOE).
Energy Undersecretary Rowena Guevara said the country’s high electricity rates were largely driven by power supply problems in the Visayas, where yellow alerts were declared due to insufficient reserves.
“We had the highest residential electricity rates in Asean, mainly due to the yellow alerts in [the] Visayas brought about in turn by lack of electricity supply overall in the island group,” Guevara said.
Yellow alerts are issued when available power reserves fall below the level needed to ensure a comfortable buffer for the electricity grid, raising concerns about possible rotating brownouts if supply conditions worsen.
Guevara said electricity demand also rose during the dry season, pushing generation companies to use more expensive fuels to keep their power plants running.
“Moreover, another reason was demand being high during the dry season, which in turn forced generation companies to use the more expensive fuels to keep power plants, and also made electricity remain at high levels,” she said.
For Filipino consumers, the high rates mean bigger monthly electricity bills—particularly for households that rely heavily on electric fans and other appliances to cope with hot weather.
The DOE said the situation underscores the need to strengthen the country’s power supply and grid reliability, particularly in areas where electricity reserves remain tight.
The Philippines’ high power costs have long been a concern for households and businesses, with electricity prices affecting not only family budgets but also the cost of goods, services and business operations.
As demand rises during periods of extreme heat, the pressure on the country’s power system—and on consumers’ monthly bills—could remain a concern unless additional and more affordable power supply becomes available.
