Govt mulls ecozone power discounts

Manila Times.net
Published : Saturday, November 12, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO REPORTER


THE government is looking for ways to keep the electricity rate discounts of economic zone locators even after December amid the looming termination of the special rate program of state-owned National Power Corp. and Manila Electric Co.


“There are lots of options that we are still studying. That is why we are in discussion with PSALM, Napocor and the Philippine Economic Zone Authority, including the economic managers to come up with a win-win solution to this matter,” Department of Energy Secretary Jose Rene Almendras said.


Ecozones under Meralco’s franchise area have been benefiting from special rates brought about by a memorandum of agreement signed with Napocor in 2007.


The agreement will lapse on December 25. Meralco, PEZA and members of the Semiconductor and Electronics Industries in the Philippines Inc. have asked the government to extend the program for another year.


“The matter is still subject for approval by the financial institutions of the government, thus, there have been continuous consultations with the economic cluster for the best possible solution on this matter,” Almendras said.


The government’s decision, however, would have to consider that most of the power generating plants of Napocor, particularly in Luzon and the Visayas, have already been privatized, thus limiting its capability to renew power supply contracts at discounted power rates.


Add to this Napocor’s mounting losses, preventing it from continuing with the rate discount, Emmanuel Ledesma Jr., president of state-run Power Sector Assets and Liabilities Management Corp., said separately.


Napocor and Meralco’s special rate program benefited 279 customers in industrial areas, representing 43 percent of total manufacturing exports valued at about $19 billion. These industries provide more than 222,213 jobs.