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Summer is over, but residents of Luzon are still paying high power rates during the rainy season. While demand is relatively high in the hotter months, supply constraints and other market forces keep electricity prices high. It is important for residents to establish why the prices remain high and how they can manage their energy costs in the cold season.
This article will review the drivers of power price hikes in the Philippines related to the rainy season, and present new ways that residents in Luzon could conserve energy.
Why Are Power Prices Still High?
1. Ongoing Supply Issues
Power supply issues persist year-round in the Philippines. The country relies on coal, natural gas, and renewables. Disruptions from sources like the Malampaya Gas Field cause price fluctuations, even during the rainy season. Plant maintenance and breakdowns further strain the grid, forcing distributors to buy costly electricity from the Wholesale Electricity Spot Market (WESM).
2. Impact of the Wholesale Electricity Spot Market (WESM)
The WESM usually remains volatile all year round in terms of electricity price, in any season. At times, if the contracted supply is not available to meet demand, distributors and local cooperatives go to the spot market. And if there are any interruptions or supply shortages in the WESM, prices can spike up, the costs are passed on to the consumers and power bills are kept high during cooler months.
3. Increased Use of Appliances During the Rainy Season
Although air conditioners are needed less frequently during the rainy season, other energy-intensive appliances may see an uptick in use. Electric dryers, water heaters, and dehumidifiers are often relied upon more during this time to cope with the increased humidity and damp conditions brought on by constant rainfall. This can offset reductions in energy usage that might come from decreased air conditioner use, keeping household electricity consumption high.
Impact on Luzon Households
For Luzon residents, the rainy season offers some relief from the intense heat of summer, but it doesn’t necessarily bring relief from high electricity bills. Here’s how the current energy landscape impacts households:
1. Continued High Utility Bills
Even though residents may be using fewer air conditioning units, other appliances—such as dryers and heaters—are now being used more frequently, keeping electricity bills from dropping significantly. Additionally, with supply disruptions and fluctuating WESM prices, households still pay more for electricity than they might expect during the cooler months.
2. Power Outages Due to Weather-Related Issues
The rainy season is notorious for causing power outages and brownouts, especially in rural and mountainous areas of Luzon. Flooding, storms, and landslides can disrupt power infrastructure, leading to blackouts. In these cases, the cost of power restoration and emergency supply measures can further contribute to the high cost of electricity.
3. Effect on Businesses
Power consumption patterns may change during the rainy season for small and medium-sized businesses. While cooling costs may decrease, the need for constant lighting, electrical equipment maintenance, and appliances like dehumidifiers can keep overall energy expenses elevated. For businesses that rely on steady power to operate machinery or maintain inventory (such as food businesses that require refrigeration), the risk of power outages during the rainy season poses an additional concern.
Practical Solutions for Luzon Residents
Although the context has shifted with the arrival of the rainy season, residents can still take proactive steps to manage their energy consumption and keep their electricity bills in check.
1. Optimize Use of Rainy Season Appliances
Focus on efficiently using dryers, dehumidifiers, and water heaters. You can do so by using timers to ensure you only use these appliances as necessary, and air-drying clothes when possible.
2. Use Efficient Lighting
Switch to LED bulbs and maximize natural light by opening your windows or curtains to reduce the need for artificial lighting.
3. Continue Exploring Solar Power Solutions
Despite fewer sunny days, it’s still worth the investment to go solar. Solar panels can still generate electricity during cloudy days, with any excess energy stored or sold back via net metering.
4. Insulate Your Home
With the rainy season’s cooler temperatures, residents can reduce their reliance on electrical appliances for heating by properly insulating their homes. One way to do this is by weatherproofing windows and doors, adding curtains or blinds, and using draft stoppers to prevent cold air from entering the house.
Conserving Energy During Rainy Season
Luzon residents, as well as the rest of the country, should stay mindful of energy consumption and the factors driving power prices as the rainy season continues. While the summer heat may be gone, electricity bills can be high due to power supply challenges and increased use of heat-inducing appliances. By adopting energy-saving practices such as those described here and investing in long-term solutions like solar power, households can still mitigate the financial strain caused by high electricity costs during cooler months.
Source: Power prices up this month as rising temperatures drive up demand