Power rates headed upward due to more expensive coal
POWER GENERATORS expect higher coal and fuel prices driving power rates upward, after the price of thermal coal hit $446 per ton on March 3, the Department of Energy (DoE) said after consultations with the industry.
In a statement on Sunday, the DoE said it met with power generators to seek ways to address the impact of higher costs.
“According to the Philippine Independent Power Producers Association (PIPPA), their initial estimates indicate that the price of fuel may (drive rates to) P9/kWh, (after) the price of coal (on March 3 hit) $446 per ton,” the DoE said.
PIPPA members include SMC Global Power Holdings Corp.; Aboitiz Power Corp.; Semirara Mining and Power Corp.; First Gen Corp.; Quezon Power Philippines Ltd. Co.; AC Energy Corp.; TeaM Energy Corp.; Filinvest Development Corp.; and Meralco PowerGen Corp.
The industry has recommended a suspension of the secondary price cap on the Wholesale Electricity Spot Market; staggered fuel price increases; suspending the value-added tax (VAT) and excise taxes on coal and oil; and relaxing the 30-day coal inventory requirement for generation companies to better manage their scheduling of coal deliveries.
The DoE told PIPPA it will bring the VAT and excise tax matter before the government’s economic managers at the National Economic and Development Authority-Economic Development Committee meeting on Monday.
Pump prices increased for a ninth consecutive time last week: 90 centavos per liter for gasoline; 80 centavos for diesel; and 75 centavos for kerosene.
Since the start of the year gasoline, diesel, and kerosene prices per liter have risen by P9.65, P11.65, and P10.30, respectively.
Fuel prices are expected to increase on Tuesday by P5.35-P5.50 for diesel and P3.60-P3.75 for gasoline. — Marielle C. Lucenio
