You are on page 1of 7

Iloilo City has the most expensive

electricity in the country, world
13 September 2010
ILOILO CITY – The Freedom from Debt Coalition (FDC-Iloilo) has released a disturbing report
which shows that consumers in Iloilo City located in Region VI - Western Visayas, in the Central
Philippines, are charged with the most expensive electricity rates, not only in the country, but also
in the whole world.

According to FDC-Iloilo, for the month of August 2010 alone, a household consumer with a total
electricity consumption of 195-kilowatt-hours coughs-out P2,525.95 for monthly bill at the per
kilowatt-hour rate of P12.95.

Iloilo City is under the exclusive franchise of service of Panay Electric Company (Meralco),
considered one of the oldest private power distribution utility in the country, and with more than
40,000 consumers.

Highest in the country

In a comparative table of rates prepared by FDC (See Table 1), it revealed that Iloilo City is paying
the most expensive household electricity if compared to the same category of consumers located in
other key cities in the Philippines like Leyte, Cebu, Bacolod, Davao, General Santos or even in the
country’s capital Manila.

With a total of 195-kWh consumption for August month, consumers in Leyte pays only monthly of
P1,392.30 or P7.14/kWh. In Cebu, consumers pay only P1,753.05 or P8.99/kWh while Bacolod
City P1,255.00 or P6.43/kWh.

On the other hand, Davao City consumers is billed P1,339.65 or P6.87/kWh rate while General
Santos has P1,066.65 or P5.47/kWh.

In Manila, the country’s business and government center, Manila Electric Company (Meralco), a
sister company of PECO, charges its consumer a monthly electricity of P10.00/kWh or a total
monthly bill of P1,950.00.

“A simple look at the comparison of rates illustrates that electricity prices in Iloilo City is
scandalously exorbitant if compared to other key cities in the country,” said Ted Aldwin E. Ong,
chairperson of FDC-Iloilo.

“What could be the best explanation over this issue when PECO has been found out to have

22/kWh. Ong likewise shared that “the same data will be submitted to the respective committees of Energy in the House of Representatives and the Senate of the Philippines in order to have this issue .” Ong was referring to the daily power outages wrapping the city since January. Iloilo City under PECO has the highest. Energy.” “The data that we have gathered will be submitted to the Committee on Transportation. we pay for the highest electricity rates compared to other citizens of the world. Disturbed about the cost of electricity in Iloilo City. The group has been criticizing PECO on the “everyday power blackout which hampered livelihood and economic activity and diminishing putting productivity levels to all time low while charging the same kilowatt-hour rates in spite of the services it did not deliver to its consumers. Highest in the world Moreover. Russia P0. also in the world. Another look at the data showing Iloilo City electricity rates versus other developed and progressive cities in the world shows that Iloilo City has also the highest electricity rates. “Our government officials starting from the President of the Republic. Española. United Kingdom P4.” stressed Ong. Japan Php9. For instance. but surprisingly. (See Table 2) According to retired Prof. and Public Utilities of the local government of the City of Iloilo which is initiating an investigation on the issues involving the power utility. “although the data is at least eight years old. that “the power utility is committing a great injustice to the Ilonggo citizens for it has repeatedly failed to justify why its rates is skyrocketing yet its quality of service is way below par. the group also revealed that Iloilo City is not only the highest in terms of electricity rates in the country.72/kWh. to our Senators. down to our honorable Congresspersons are easy-go-lucky on the power issue for maybe they are not aware that wherever you go in the Philippines. Surprisingly.overcharged consumers amounting to millions of pesos since the 1990’s and was even ordered to refund by the Energy Regulatory Commission. the global electricity rate during those years was on a downward trend.” said Ong.” said Ong. United States only charges P3. especially those who are located in highly-developed nations. It shows that there is little chance rates in other countries would be much higher today than they were during those years. Ted Aldwin Ong underscored.82/kWh. retired Professor Pablo Española of the University of the Philippines-Visayas investigated the prevailing rates in other places in the world from the years 1994 to 2002 and was shocked to learn about its result.63.” added Ong.

255. (Davao Light) South Cotobato Region XII .753.scrutinized or investigated.65 Davao Region Co.99 P1. and has chapters scattered in the Visayas and Mindanao regions.43 P1. such as.46 P1.950. Comparative Monthly Electricity Rates Iloilo City versus other cities Monthly kWh Per kWh Monthly Region City Distribution Utility consumption rate electricity bill National Capital Manila Electric Co.” The Freedom from Debt Coalition is a campaign and advocacy organization in the Philippines focused against the privatization of essential services and commons.05 Central Visayas (Veco) Central Negros Region VI – Bacolod City Electric Cooperative 195 P6.70 Soccsksargen Santos City (Socoteco II) Leyte Electric Region VIII – Tacloban Cooperative 195 P7.392.064. Manila 195 P10.87 P1. General Electric Cooperative 195 P5.00 Region (Meralco) Region XI – Davao Light & Power Davao City 195 P6.00 P1.30 Eastern Visayas City (Leyeco) Region VII – Visayas Electric Co. Cebu City 195 P8. -30- Table 1.14 P1.339.00 Western Visayas (Ceneco) . power and water.

60 Austria 5. Global Electricity Rates versus Iloilo City Country Peso equivalent/kWh OECD 4.35 Barbados 9.94 Bolivia 2.95 Western Visayas Company (PECO) NOTE: Data generated from August 2010 Monthly Electricity Bill by PECO Table 2.97 Brazil 5.87 .87 Australia 3.76 Canada 2.70 Chile 3. Region VI – Panay Electric Iloilo City 195 P13.595.30 P2.81 Argentina 3.72 OECD Europe 4.18 Belgium 5.

47 El Salvador 3.57 Japan 9.07 Jamaica 6.37 Colombia 2.63 .03 Greece 3.91 Ecuador 2.69 Finland 3.46 Guatemala 3.59 Germany 5.27 Italy 6.92 Cuba 6.42 Denmark 9.03 Czech Republic 3.53 Chinese Taipei (Taiwan) 3.40 Dominican Republic 3.88 Costa Rica 2.42 Hungary 3.70 Haiti 3.60 India 1.China 1.06 Honduras 3.82 France 4.75 Indonesia 1.58 Grenada 10.12 Ireland 4.55 Guyana 2.

19 Panama 5.19 Luxembourg 5.37 Netherlands 6.23 United Kingdom 4.26 Turkey 4.Kazakhstan 1.44 Paraguay 2.04 Mexico 3.90 Surinam (Suriname) 7.26 Thailand 2.71 Spain 4.72 United States 3.83 Philippines (Iloilo City) 12.22 Slovak Republic (Slovakia) 2.31 Norway 3.54 Switzerland 5.50 Poland 3.69 Sweden 4.62 Russia 0.70 Trinidad and Tobago 1.83 South Africa 1.88 Nicaragua 5.56 Peru 4.17 Korea (South Korea) 3.97 New Zealand 2.78 Portugal 5.82 .71 Romania 1.

iloilochapter@yahoo. Freedom from Debt Coalition – Iloilo Chapter No. Ong.99 Philippine Peso. chairperson @ +63. 185 Jereos St. 5000 Iloilo City Office Telephone: (63-33) 508-2028.16 NOTE: The data was prepared by retired Professor Pablo Española of the University of the Philippines-Visayas and shared to Contact Person: Ted Aldwin E.00 US Dollar = 44. La Paz District.16 Venezuela 2. Philippines. which was taken from the billing month of July. This data generated spanned the years 1994-2002. The rates were converted using the exchange rate of 1.919.930. Email: fdc. except for Iloilo City. issued by Panay Electric Company (PECO).. Uruguay 6.8908 . 2010.