Palace vows to solve power rate problem

Business World Online

Posted on January 24, 2014 08:45:13 PM

By Mikhail Franz E. Flores, Reporter

MALACAÑANG has vowed to get to the bottom of the record increase in electricity rates and cited possible corrective measures to prevent more hefty rate hikes in the future.

"I think it is incumbent upon us that this situation that greatly affects the welfare of so many of our countrymen -- we should know what actually transpired and what corrective actions should be undertaken to address that situation," Communications Secretary Herminio B. Coloma, Jr. said in a press briefing, citing the position of President Benigno S.C. Aquino III.

Mr. Coloma noted government actions to address the energy issue, including the ongoing investigation of the Department of Energy and the Energy Regulatory Commission on the possible collusion of power firms to cause the spike in electricity rates. He also cited the parallel probe of the Justice department’s Office for Competition.

A review for the possible amendment of the Electric Power Industry Reform Act (EPIRA; Republic Act 9136) is also being considered.

"Government is committed to ensure sufficient supply of electricity to households and industries at reasonable rates and foster a business climate that encourages continuing investments in energy development," Mr. Coloma said.

Corrective measures that could be taken, Mr. Coloma said, include preparing for impending shutdowns for regular maintenance as well as ensuring that the ERC prevents collusion, abuse of market power and unjustifiable profits.

If found that power firms’ profits are unjustifiable, the government would consider ordering the producers to refund their income, Mr. Coloma said.   source