TOTAL ELECTRIFICATION. Department of Energy Undersecretary Rowena Cristina Guevara says the government aims to achieve 100 percent total household electrification by 2028 during the 16th Media Seminar organized by the United States Embassy in the Philippines in Iloilo City. She said total electrification would lead to PHP315 billion in economic benefits. (PNA photo by Leah Gonzales)
ILOILO CITY – A Department of Energy (DOE) official on Monday said PHP72 billion would be needed to fund the government's goal of 100 percent total household electrification by 2028.
DOE Undersecretary Rowena Cristina Guevara, during the 16th Media Seminar organized by the United States Embassy in the Philippines, said at present, there are still more than two million households in the country without electricity.
"Meron tayong total electrification program na hawak ng National Electrification Administration, the electric cooperatives, and the National Power Corporation. Anong ginagawa nila? They will make sure that by 2028, inutos ni Presidente, dapat 100 percent electrified ang buong bansa (We have a total electrification program under the National Electrification Administration, the electric cooperatives, and the National Power Corporation. What are they doing? They will make sure that by 2028, as the President instructed, the country will be 100 percent electrified)," Guevara said.
She added that based on the study conducted by the DOE and the Philippine Statistics Authority, the estimated total economic impact of the total electrification would be PHP315 billion, or about 1.8 percent of the country's gross domestic product.
"Well, if you increase electricity from 0 hours to 8 hours, the income and expenditure of the household will go up by about 17 percent. If you go from 8 hours to 16 hours, the income and expenditure will go by about 33 percent," she said.
Guevara said increasing access to electricity for as much as 16 to 24 hours would increase households' income by as much as 49.4 percent and expenditure by 52.2 percent.
"Because of that, I can do business. And I can increase my income. And of course, I will spend more money. If we are able to do 100 percent total electrification of the country, the economic benefit is PHP315 billion pesos. That is 1.8 percent of our GDP," she said.
The latest data from the DOE showed that as of the end of March this year, the total household electrification level was at 93.12 percent.
Guevara said the DOE presented these numbers to the Department of Finance (DOF) and the National Economic and Development Authority (NEDA) last week.
"The meeting was good because the DOF and the NEDA accepted that it's okay to invest in the total electrification. Because they already saw the economic benefit. Nobody reported that part to them before," said Guevara.
"So, because of that, we're thinking of a possible loan from ADB (Asian Development Bank) or World Bank," she added.
Guevara clarified however that only a portion of the PHP72 billion will be secured through loans since the government has a budget allocation of PHP3 to PHP5 billion per year for the country's total electrification program. (PNA)
