The Department of Trade and Industry is working closely with the Department of Energy (DoE) to formulate a new power rate subsidy scheme for Philippine Economic Zone Authority (PEZA) locators to prevent capital flight and entice investors to still invest in the Philippines.
Trade Undersecretary Cristino Panlilio said power rate subsidies were an effective tool to encourage investors to locate here, considering that the Philippines has one of the highest power rates in the region.
“We’re working together with the DoE to create a formula that will not make the subsidy appear too big at the outset. We want to attract more locators here. We want to do it as soon as possible,” he said in an interview Monday.
If talks go well and all issues are resolved, he said a new power rate subsidy scheme could be in place by the end of the year or the beginning of next year.