United Filipino Consumers and Commuters (UFCC) has voiced concerns over the persistently high power rates in the Philippines, asserting that they are deterring both foreign and domestic investors from establishing businesses in the country. The consumer group highlighted that the power rates in the Philippines rank among the highest in Asia, posing a significant challenge to the government's economic objectives.
UFCC President, Rodolfo Javellana Jr., emphasized the adverse impact of prohibitive electricity prices on attracting foreign investors. He stated, "The foreign investors we are trying to attract will not set up business here due to the prohibitive electricity prices. Those companies are owned by a few oligarchs". Javellana specifically pointed out the high power rates in Manila Electric Co. (Meralco) service areas, covering more than 75 percent of the economy, as a major disincentive for both foreign and local investors.
The consumer group's statement aligns with the recent 57-centavo per kilowatt-hour (kWh) increase in electricity rates by Meralco. This increase translates to an additional cost of about P114 in the total monthly bills for households consuming 200 kWh. UFCC warns that unless measures are taken to address and mitigate the issue of expensive electricity rates, the government's ambitious economic initiatives, such as the 'Bagong Pilipinas' (New Philippines), may face challenges in realization.