Mindanao power rates could rise by US$0.074 per KWh

Government says it’s a solution to continuing blackouts.

Jericho Petilla, Secretary of the Department of Energy, said this option has to be presented to Mindanao’s electric cooperatives. The meeting, set for April 1, will give the cooperatives options on what they can do to produce additional power.

Retail prices of electricity in Mindanao depend on the availability of power. The longer the contract, the cheaper retail prices become and the shorter the contract, the more expensive it will be.

Petilla said electric cooperatives will be made to choose their own preferred arrangement.

"I don't want to become a salesman for these private companies but I guess we need to educate them on the best options we have, given the situation that we're in," Petilla said.

"If you ask me, if I take the most expensive option, there will be power in Mindanao, anywhere from 6 to 8 weeks. The thing is, it's expensive but I'd like to give Mindanao a taste of what is coming if they took an expensive source of power.”

Petilla said this will increase power costs from US$0.151 per KWh to US$0.245 per KWh for the expensive source. This, he said, was still lower than the US$0.294 per KWh paid by residents in Metro Manila.