Philippines act to cut consumption

5 April 2005 – The soon to be implemented ‘time of use’ pricing policy will help solve the Philippine’s future power supply issues, according to the country’s Department of Energy secretary, Raphael Lotilla.

Lotilla said: “The projected power shortage in 2008-2009 pertains to our peak demand. But with mechanisms such as ‘time of use’ pricing, we can encourage large customers who are engaged in power intensive activities to shift their schedules to off-peak hours.”

Under the terms of the scheme, consumers will be charged higher rates during times of peak demand and lower rates during times of low demand.

The Secretary made the comments as his department announced that it had managed to reduce its electricity consumption by an average of 27 per cent over the last six months, producing savings of around $38 000. There has been a nationwide drive to reduce energy consumption since the President launched an energy conservation programme last year.