Keep power rate discount, Palace urged

Manila Standard Today
by Julito G. Rada


The Philippine Economic Zone Authority is seeking the help of Malacañang to renew the power rate discount to industrial estates, saying its termination after Dec. 25 this year will erode the country’s competitiveness and drive away potential investors.


Peza director-general Lilia de Lima asked Trade Secretary Gregory Domingo in a letter to “appeal for the intercession of the President to sustain the special ecozone rate while the [retail competition and open access] is not yet in place.”


“If the ecozone rate program [ERP] will not be extended, it will definitely increase the cost of electricity which will certainly be a huge disappointment to ecozone locators considering the deferment of the retail competition and open access, which allows them to choose their preferred suppliers which can offer them competitive power rates,” De Lima said.


She said Peza had written PSALM president and chief executive Emmanuel Ledesma Jr. to reconsider the agency’s decision to terminate the ERP to prevent an irreparable damage to the economy and the country’s competitiveness as an investment destination.


She said the agreement between National Power Corp. and Manila Electric Co. provided for a one-year extension of the special rate.


She said it was Peza’s position that while ecozone locators could not enjoy yet the benefits of the open access regime, the government should continue providing the special power rate to support the competitiveness of export manufacturing enterprises in the world market and prepare them for the full implementation of the retail competition.


Early this week, Power Sector Assets and Liabilities Management Corp. said it was not inclined to extend the supply contract between Napocor and Meralco after Dec. 25 this year, ending the power rate discount enjoyed by industries.