MANILA, Philippines - Manila Rep. Maria Theresa David yesterday warned consumers that electricity rates could go up by at least P1.32 per kilowatt-hour (kwh) if the Energy Regulatory Commission (ERC) approves several rate increase petitions.
David joined several House colleagues in calling for a review of the Electric Power Industry Reform Act (EPIRA) of 2001, which she said has failed in its goal of bringing down the cost of electricity.
“The law’s objective has obviously been defeated, with the country having the highest residential power rates not only in Asia but also in the whole world at P11 per kwh,” she said.
“The cost of power is a significant factor in the number and amount of investments that a country is able to attract. These investments help create opportunities that generate the much-needed jobs to spur economic development,” she stressed.
According to her, the Power Sector Assets and Liabilities Management Corp. (PSALM) has a pending petition for a 10.59-centavo increase for Luzon, 11.57 centavos for Visayas and 2.58 centavos for Mindanao.
This is on top of its application to increase the universal charge by 39 centavos to pay for a portion of the debts of the bankrupt National Power Corp. (Napocor), David said.
PSALM also has a filing to recover cost increases arising from fluctuations in the peso-dollar exchange rate, she said.
David added that in addition to these filings, the privately owned National Grid Corp. of the Philippines (NGCP), which now operates Napocor’s transmission facilities, has a petition for an 82-centavo per kwh adjustment.
The lawmaker pointed out that Meralco, the country’s largest power distributor, has started billing an eight-centavo increase in May due to high electricity cost in the spot market.
David urged the House of Representatives to find out why the government has not been able to cut electricity rates.
Rep. Teddy Casiño of the party-list group Bayan Muna said President Aquino should give the problem on the high cost of power some attention.
He said some measures could be taken to reduce electricity rates.
One is to prohibit power generators and distributors from charging customers for electricity that is stolen or lost in transmission and distribution lines, he said.
People should not be made to pay for electricity that they don’t consume, he stressed.
Casiño suggested another cost-reduction measure: cut government royalties on natural gas and peg its price in pesos, not dollars.
He said he could not understand why an indigenous resource is priced in American dollars. source
David joined several House colleagues in calling for a review of the Electric Power Industry Reform Act (EPIRA) of 2001, which she said has failed in its goal of bringing down the cost of electricity.
“The law’s objective has obviously been defeated, with the country having the highest residential power rates not only in Asia but also in the whole world at P11 per kwh,” she said.
“The cost of power is a significant factor in the number and amount of investments that a country is able to attract. These investments help create opportunities that generate the much-needed jobs to spur economic development,” she stressed.
According to her, the Power Sector Assets and Liabilities Management Corp. (PSALM) has a pending petition for a 10.59-centavo increase for Luzon, 11.57 centavos for Visayas and 2.58 centavos for Mindanao.
This is on top of its application to increase the universal charge by 39 centavos to pay for a portion of the debts of the bankrupt National Power Corp. (Napocor), David said.
PSALM also has a filing to recover cost increases arising from fluctuations in the peso-dollar exchange rate, she said.
David added that in addition to these filings, the privately owned National Grid Corp. of the Philippines (NGCP), which now operates Napocor’s transmission facilities, has a petition for an 82-centavo per kwh adjustment.
The lawmaker pointed out that Meralco, the country’s largest power distributor, has started billing an eight-centavo increase in May due to high electricity cost in the spot market.
David urged the House of Representatives to find out why the government has not been able to cut electricity rates.
Rep. Teddy Casiño of the party-list group Bayan Muna said President Aquino should give the problem on the high cost of power some attention.
He said some measures could be taken to reduce electricity rates.
One is to prohibit power generators and distributors from charging customers for electricity that is stolen or lost in transmission and distribution lines, he said.
People should not be made to pay for electricity that they don’t consume, he stressed.
Casiño suggested another cost-reduction measure: cut government royalties on natural gas and peg its price in pesos, not dollars.
He said he could not understand why an indigenous resource is priced in American dollars. source
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