Ever wondered how our electric power industry works?
The current structure following the Electric Power Industry Reform Act includes the generation, transmission, distribution, supply, and market operator sectors.
Have you ever read your electricity bill and wondered what’s in it?
Here we show you the contents and breakdown of charges in your electricity bill, as well as look into the factors that contribute to the high cost of electricity in the country.
Did you know that a portion of our electricity in Luzon and Visayas is bought from a power market?
Pursuant to the Electric Power Industry Reform Act of 2001, the Wholesale Electricity Spot Market was established as a venue for trading electricity as a commodity. This is where distribution utilities, such as Meralco and VECO, purchase additional power to meet the energy demand within their franchise area.
With its goal to promote a transparent and competitive electricity market, WESM is considered a best practice in the world.
The Philippines, with its geographical location and topographical features, has access to an abundant supply of renewable energy (RE)—and yet, RE remains having a small contribution (only at a little over 20%) in our country’s energy mix.
Let us look into the different renewable energy sources that we could harness to power our homes and industries at much lower costs.
In 2008, the Renewable Energy Act (Republic Act 9513) was passed to promote the development, utilization, and commercialization of RE resources in the country. It sought to accelerate on-grid and off-grid development of RE, provide incentives for RE projects and facilities, and implement other RE initiatives from the government.
Since then, however, the share of RE in the country’s power generation mix has decreased. How is the government addressing this? What are the efforts to further promote RE in the Philippines?
The country’s reliance on coal and other fossil fuels brings issues on accessibility, affordability, and reliability to our energy sector.
Renewable energy, as domestic resources with abundant supply, has the potential to address these issues and modernize our power sector while empowering communities and protecting our climate. Our national target of increasing the share of RE in our power generation mix to 35% by 2030 and 50% by 2040 attests that cleaner, more reliable, and cheaper energy in renewables is the future.
Did you know that fossil fuel companies also “pasaload” to us? Learn more about what “pasaload” is in the energy context, which drives up our monthly electricity bill, hidden in the generation charges.
But as consumers, we have the right to see the breakdown of the generation charges from our distribution utilities in order to better understand what we are paying for and to demand cheaper sources of renewable energy.
Renewable energy transition is key to achieving our country’s commitment to reduce 75% of greenhouse gas emissions by 2030. While harnessing power renewables yields little to no emissions, it can also lower electricity costs, help companies achieve their net-zero targets, and enable sustainable transport systems. At present, however, our energy sector remains to be based on fossil fuels.
How and why should we transition to more renewables?
Distribution utilities are accountable to uphold transparency regarding the generation charges breakdown which takes up the largest component of our electricity bill.
Use this template to send your distribution utility a letter requesting the regular release of generation charge breakdown.
Identify a potential eligible end-user whom you can engage in switching to renewable energy through the Green Energy Option Program. Schedule an appointment with those business entities using this letter template.