Friday, November 25, 2011

DTI mulls ecozone power options

Manila Times.net
Published : Friday, November 25, 2011 00:00 Written by : Darwin G. Amojelar Senior Reporter


THE Department of Trade and Industry on Thursday said it is looking for a legal remedy to allow semiconductor firms operating in economic zones to keep their power rate discounts.


“The government is looking for a solution to this problem because most of the locators in the economic zones are electronic companies and the electronic companies are suffering already with loss of demand. That’s why our electronic sector was down 15 [percent] to 20 percent. So, it’s really not a good time to experience an increase in power rates,” DTI Secretary Gregory Domingo told reporters on the sidelines of the Luzon Investment Conference.


Ecozones that are part of Manila Electric Co.’s franchise are entitled to special rates brought about by a memorandum of agreement signed with National Power Corp. in 2007.


But the agreement will lapse on December 25 after the privatization of most Luzon plants previously owned by Napocor.


“The government doesn’t own the resources anymore. It’s not our prerogative to extend it. It’s private sector prerogative to extend it. But we are trying very hard to find a way to be able to extend them . . . we have to find a legal way to do it to be able to mitigate the impact,” Domingo said.

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