COLD storage companies are worried over the continuously increasing cost of fuel in the world market, forcing them to seek means to cut operating costs particularly on energy expenses.
During the recently concluded 3rd Quarter Cold Chain Association of the Philippines (CCAP) Roundtable Discussion held at the Old Swiss Inn Restaurant in Makati, CCAP president Anthony Dizon said the volatility of fuel prices is becoming a burden to cold chain companies.
Approximately 30% of cold chain facilities’ operating cost goes to energy since refrigeration requires a maximum supply of electricity.
Last week, the price of fuel has reached $50 per barrel from only $45 in May.
Dizon noted as a result, the sector is anticipating further increases in power rates in the coming months. This year, the country’s biggest power supplier Manila Electric Company has increased electricity charges by as much as P1.20 in Luzon alone.
Amid the impending power rate increases, he said companies should focus on the improvement of energy efficiencies.
During the meeting, the sector expressed interest in collaborating with energy performance contracting firm Davies Energy System, Inc. (DES), a contractor for cost-effective energy savings products, equipment and services.
DES assistant vice president Alfred V. Villa-Real said the company offers a program which can reduce electricity bills by 5-15% on average.
“We use our skills to dramatically improve the operating efficiency of a business’ electrical system by balancing and tuning the entire facility’s system,” he explained.
