Electrical equipment prices soar | Philstar.com

Danessa Rivera – The Filipina Star

February 13, 2022 | 00:00

MANILA, Philippines — Prices for electrical materials and equipment have soared during the pandemic, according to the National Electrification Administration’s (NEA) updated price index for electricity cooperatives.

In a memorandum posted on its website, the NEA released the Equipment and Materials Price Index (EMPI) for 2022 to update prices to 2019 levels.

The revised index “will serve as a tool for the NEA in the evaluation of EC capital expenditure (capex) projects and projects financed by grants or loans, as well as a basis for the electricity cooperative to determine the approved budget cost for the purchase of equipment and materials (EM).

The EMPI update was requested by the National Association of Electricity Cooperative General Managers (NAGMEC) “due to the significant escalation in the prices of materials and equipment during the COVID-19 pandemic” .

Based on the new index, fuses saw the largest price increase at 46% from the 2019 EMPI, followed by timber and steel sleepers at 43.7%.

Steel pole prices increased by 21.9%; wooden poles by 10.3%; concrete poles 6.1%; 33.1% drivers; distribution transformer 8.1%; pole line material by 35.3%; connectors by 29%; and insulators 13.4%.

“Subsequently, the prices of substation power transformers, protective equipment, steel structures and accessories also increased,” the state-owned company said.

The NEA also requested price quotes from various manufacturers, suppliers, traders and contractors to determine the output of the new price index.

With the release of the new price index, the NEA has requested the continental EC to use the 2022 EMPI to establish the approved budget cost.

In the meantime, ECs located on the island or in remote areas should use the same price index, but excluding the freight and handling incurred to deliver the items from the nearest mainland port to the destination point.

The NEA is the agency that oversees 121 electricity cooperatives nationwide. It has an enhanced CE lending program that includes regular, calamity and concessional loans, emergency and short-term credit loans, single-digit system losses, renewable energy and loans for modular generating sets.