Manila, Philippines – Malacañang, aware of rising complaints against the looming power rate increase in Metro Manila and nearby areas, has vowed to impose sanctions against public utility companies involved in any abuse following complaints .
Presidential Communications Operations Secretary Herminio Coloma Jr. assured the government’s resolve to protect public welfare from any unreasonable power rate increases.
Coloma made the remarks after Manila Electric Co. (Meralco) announced plans to impose P2 to P3 per kilowatt hour increase due to the month-long preventive maintenance of the Malampaya gas line.
The power rates are reportedly expected to normalize early next year.
“Government will protect the public from any unreasonable power rate adjustments and hold public utility firms accountable by enforcing appropriate sanctions in case of apparent abuse,” Coloma said in a statement.
“Power utilities, distributors and other players in the electric power industry are treated fairly by government in accordance in law. We do not, and will not condone abuses of these companies,” he added.
Even though the determination of power rates is driven by market forces, Coloma said the Energy Regulatory Commission (ERC) has the authority to enforce rules and regulations that will curb possible abuses, such as excessive rate increases.
“As stated in the EPIRA law, government’s mandate is to ‘promote competition, encourage market development, ensure customer choice and penalize abuse of market power in the electricity industry,’” he said.
He noted that the ERC recently ordered a refund of excess charges imposed on Meralco customers as part of consumer protection.
Malacañang recently justified the power rate increase to be carried out by Meralco but assured the upward adjustment will be temporary.
It also promised to sustain social safety nets, including electricity subsidies to poor households, to mitigate the power rate hike.
Apart from the lifeline electricity subsidy given to poor households, Coloma assured the Department of Energy will continue to find “additional solutions” to the problems in the power industry.
He said the government will also “do everything in its power” to protect the welfare of the citizens “who cannot afford to carry additional burdens” following the recent calamities. source
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