P-Noy worried over power rate hike in Visayas

By Delon Porcalla (The Philippine Star) Updated April 21, 2012 12:00 AM MACTAN, Cebu, Philippines – President Aquino yesterday expressed concern over the power rate hike approved by the Energy Regulatory Commission (ERC) for the Visayas region. 
“We are focused on the Visayas. We are not sure if the rate increases are warranted,” he told stakeholders of the electronics industry during the 17th World Electronics Forum at the Shangri-la Hotel here. 
Aquino said the ERC should review the 60.60-centavo increase per kilowatt-hour (kwh) in the Visayas. He said the executive department and Congress would make representations with the ERC. The ERC approved increases in generation charges by 69.04 centavos per kwh in Luzon and 4.42 centavos per kwh in Mindanao. 
“Congress first, then also the executive (department) will be making appropriate representations with the ERC to review this particular decision. I understand Congress will be coming up with a resolution asking the ERC to actually review it,” Aquino said.  He said this is the “temporary solution” that the government will be undertaking. 
The President expressed displeasure at the way the Electric Power Industry Reform Act (EPIRA) failed to bring down prices of electricity. 
“We are cognizant of the fact that the price of electricity in this country is a major deterrent to further investments and we are trying to accelerate the process where the benefits under the EPIRA law will be realized the soonest time possible,” Aquino added. 
Privatization of Agus-Pulangi bucked Sen. Aquilino Pimentel III yesterday said he is opposed to the planned privatization of the Agus-Pulangi hydroelectric power plants as a solution to the power woes in Mindanao. 
In a statement, the senator said the government should first review the EPIRA Law and see what can be done to address the power shortage affecting Mindanao and other parts of the country. 
Pimentel, who hails from Cagayan de Oro, noted the strong opposition to the privatization of the two remaining power plants of the National Power Corp. (Napocor) by residents and other stakeholders in the region. 
“Defer privatization until we review the performance of the EPIRA law and find out why the promises of benefits have not been fulfilled,” he added. 
 Among the promises of the EPIRA that Pimentel wants to look into are the promotion of competition within the power sector and the lowering of electricity rates. According to him, the Manila Electric Co. (Meralco) has increased its rates by more than 112 percent while Napocor hiked its rates by more than 95 percent in the past 10 years. 
Meanwhile, Quezon Rep. Erin Tañada renewed his call for the government to operate its remaining power plants and build new ones to avert projected shortages in two to three years. He cited the case of Thailand, where a state corporation runs its own power plants and buys from independent power producers. –With Marvin Sy, Jess Diaz article source