Energy chief targets PHP 10/kWh electricity benchmark

Energy Secretary Sharon Garin set PHP 10 per kWh as her affordability benchmark for Filipino consumers as the Department of Energy (DOE) pushes measures to lower power costs.

In a confirmation hearing before the Commission on Appointments’ Energy Committee on October 1, 2025, Garin reaffirmed the DOE’s commitment to cheaper electricity and said current power rates average around PHP 13 per kWh for Meralco and higher in far-flung areas.

“I’m hoping we can keep it down under PHP 10 per kWh,” Garin said, when asked by Sen. Panfilo Lacson on what she considers to be affordable electricity.

“Most other countries are subsidized, [their rates] ranging from around [an equivalent of] PHP 11/kWh, depending on the country. Our electricity is not subsidized. In fact, it’s even taxed. Those are some of the issues that don’t give us a competitive advantage over other countries,” Garin said.

Asked about tangible measures to reduce costs, Garin cited DOE simulations showing that successful execution of renewable energy projects in the pipeline could shave around PHP 2 per kWh from rates by 2030.

“Everything we do is for the lowering of power prices, be it implementation of all the [RE] projects, reviewing the ancillary which is really expensive in some areas.. line rental is also an issue. There are many factors we need to address piece by piece but the objective is to lower the price,” Garin said.

She said the DOE is intensifying interagency coordination to address high pass-through charges and grid constraints that add volatility to monthly bills.

Garin expressed support for long-pending amendments to the Electric Power Industry Reform Act (EPIRA) of 2001 aimed at boosting competition and investments across generation, transmission, and distribution.

She also backed a bill to remove the 12 percent value-added tax on electricity to ease the burden on households and businesses.