‘Scrutinize power-rate hike petitions’

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TUESDAY, 06 SEPTEMBER 2011 22:21 CAI U. ORDINARIO AND BUTCH FERNANDEZ / REPORTERS

A SENATOR estimated that if the latest power-hike petitions were approved by the Energy Regulatory Commission (ERC), the people's electricity bills would see a P5 increase for every kilowatt-hour (kWh) used.

Sen. Ralph Recto said the P5-per-kWh increase would be another proof that the Philippines has the highest power rates, not only in Asia but also in the world.

Recto, a former director general of the National Economic and Development Authority, noted that currently electricity rates reach P11 per kWh.

“If these petitions fall through, every power user—households and industries—would be bracing for multiple power-rate whammies where the future electricity billing would display a jump of at least P5 for every kWh used,” Recto, chairman of the Senate Ways and Means Committee, said.

Recto pressed for a congressional scrutiny into the impact of an impending series of increases in power rates on consumers already reeling from high prices of fuel and electricity.

In a statement, Recto protested that the looming power-rate hikes do not jibe with the spirit and intent of the Electric Power Industry Reform Act (Epira) that was enacted by Congress precisely to bring down soaring electricity bills of overburdened consumers.

He asked the Senate to verify whether the separate power-rate increase petitions filed before the ERC complies with the Epira law’s mandate for concerned government agencies and public utilities to ensure not only steady supply but also lower cost of electricity.

“These petitions for electricity-rate adjustments will be passed on to power end-users and hence, will be a disincentive to the country’s investors and unnecessarily burden the consumers of electric power who are currently faced with high cost of living,” he added.

The Freedom from Debt Coalition (FDC) couldn’t agree more and said the petition to increase power rates is anti-women and anti-poor.

FDC said the rate hike would be an additional burden, especially for women who are in charge of managing household budgets.

Recto noted in Senate Resolution 586 that the Power Sector Assets and Liabilities Management Corp., National Power Corp., power retailer Manila Electric Co. and the National Grid Corp. of the Philippines have filed separate petitions for power-rate increases before the ERC.

Recto said a Senate inquiry into the power-rate increase petitions would “energize the chamber with volts of ideas on whether Epira suffered a major tripping or a short circuit on its way to implementation.”