Peso depreciation vs dollar ‘will have impact’ on power prices: DOE

SINGAPORE – The continuing depreciation of the peso against the US dollar is seen to affect the already elevated power prices in the Philippines, Energy Secretary Sharon Garin said on Tuesday.

The peso further weakened to 64.17 to the US dollar at the end of Tuesday’s trading, according to the website of the Bankers Association of the Philippines.

“It will impact the rate of electricity since pass through sya eh, will impact the per kilowatt. We’ll check if there’s any way we can delay or maybe lessen the impact but that is something I will have to discuss with ERC, but yes, that will have an impact,” Garin told reporters at the sidelines of the Singapore International Energy Week.

Garin is participating in the regional discussions focused on ensuring energy resiliency and continued decarbonisation in the region.

Currency depreciation can also push prices of petroleum products upwards. Garin said the Department of Energy is ready to ask fuel firms to again stagger the increases to mitigate the impact on consumers, if needed. 

The DOE mandates the price adjustment range that oil firms must follow after the Philippines was placed under a state of national energy emergency due to the impact of the Middle East crisis.

“Normally naman they follow but hopefully it won’t be necessary,” the energy chief said.

The DOE’s estimated price adjustment range is usually released on Mondays. Pump price adjustments take effect every Tuesday.