Entrepreneur Feared the Power Rate Rise

Every business in Philippines were run by electricity, changes on it will greatly affect all business’ operations. As per Manila Bulletin dated April 30, 2012:

“MANILA, Philippines — The power industry warned Monday that the country’s electricity rates, already one of the highest in Southeast Asia, would rise further the moment government withdraws its raft of tax incentives.”

Since electricity is one essential utility that businesses must maintain, power shortfalls and rising rate would greatly affect every business’ operations as well as their costing and prices. One to mention as stated on the Manila Bulletin’s article is the great effect on fishing industry.

“Fishing industry players reported a sharp drop in the prices of fresh tamban (sardinella) following abundance in harvests of such species nowadays in fishing grounds surrounding this city. They said the price of fresh tamban that was as high as P100 per kilo about two months ago has dipped to just P45 because of good harvests”

This phenomenon will provide no relief to ordinary people since processed products out of fishes rapidly increase, because of other costs that process products undergone. Fuel rises day by day as well, with electricity downfalls fishing industry would drop its prices, however with continuous rise in fuel, transportation costs will increase which will leave manufacturing industry spend more money on transportation and operations as well. That is why canned product’s prices increase.

Manufacturing industry are greatly affected since electricity are one of their primary needs in order to run their machinery and process systematically and with high quality all products that were out in the market. If in case power will shut down even for a day, they will be forced to use generators just to maintain the continuous operations and they will of no choice will spend money on fuel. Because of this, costs and prices of every processed product will rise rapidly rise.

With the high possibility of power brownouts, manufacturing industry, retailers, etc. would switch to electric generators, which are more costly, agree? Electric companies would really want to preserve electricity through scheduling mass power shut down, but the high use of fuel and its constant price increase wouldn’t be avoided, which is really more expensive.

What is more expensive – electricity rate or fuel? Are you affected by this phenomenal trouble? Share us your thoughts and we might as well talk about it!


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