MANILA, Philippines — The unstable Luzon power supply if left unchecked could drive up food prices and stall economic recovery, Makati City Rep. Luis Campos Jr. warned on Sunday.
Campos said the Wholesale Electricity Spot Market (WESM) prices increased to an average of P9.29 per kilowatt-hour when the Luzon grid was put on red alert from May 31 to June 2, or 171 percent higher than the average WESM price of P3.42 per kWh from January to April.
“We are gravely worried that the prospect of red and yellow alerts over the Luzon grid in the weeks ahead might drive up the cost of electricity and put more upward pressure on food prices,” he said in a statement. Campos said higher electricity rates and possible supply disruptions could adversely affect power-intensive industries, such as food manufacturing.