SINGAPORE — The Philippine Energy Regulatory Commission (ERC) is evaluating potential measures to shield consumers from rising electricity prices, as the peso's continued depreciation drives up the cost of imported fuel used by the country's power plants.

"We are still studying what measures we can take to anticipate the increase in generation charges resulting from the depreciation of the peso," ERC Chairman and Chief Executive Officer Francis Saturnino C. Juan said on Wednesday on the sidelines of Singapore International Energy Week, the annual energy industry conference held in the city-state.

The peso closed at an all-time low of P64.17 against the dollar on Tuesday, falling from the previous record low of P63.95 set a day earlier, according to the Bankers Association of the Philippines. Tuesday's close marked the currency's 38th record low this year and its ninth in October alone.

As a net energy importer, the Philippines is particularly exposed to rising fuel costs when the local currency weakens, since coal, natural gas, and diesel — key inputs for power generation — become more expensive in peso terms. These higher costs can ultimately be passed through to electricity consumers in their monthly bills.

Mr. Juan said legislators have urged the regulator to implement measures to mitigate the potential effect of the currency's decline on power rates. He noted that the depreciation will not immediately be reflected in distribution charges, which are set through a rate reset process — the regulator's periodic review of the charges a distribution utility is allowed to collect. Instead, the more immediate impact will fall on generation costs, which are passed on to consumers.

"The most immediate impact of foreign exchange movements would be on generation charge pass-throughs, given how generation prices are structured," he said.

Relief measures already in place include allowing customers to pay electricity bills in staggered installments and preventing disconnections due to unpaid bills, according to Mr. Juan. Those measures address near-term bill pressure; the scope of any additional steps remains under the regulator's review.

Energy Secretary Sharon S. Garin has said she plans to discuss with Mr. Juan steps to cushion the impact of higher costs stemming from the weak peso. The planned discussion, alongside the ERC's ongoing study, is the most concrete indicator to watch for signs of whether the government's relief toolkit expands beyond the installment and disconnection measures already in place.

"We have the oil crisis. We have the currency depreciation. We have the El Niño and the coming summer," she said. "This is not the best time to be Energy Secretary, but we try as much as possible to minimize the impact." Her remarks framed the currency pressure against overlapping challenges, including El Niño — a climate pattern typically associated with drier conditions in the Philippines — and the summer months ahead.

— Sheldeen Joy Talavera, BusinessWorld (source)