Solon Questions Palace Defense Of ‘Contrived’ Plan
Manila, Philippines — The House of Representatives will inquire Tuesday into plans of the Manila Electric Co. (Meralco) to impose a huge power rate hike, with its Committee on Energy leading the congressional probe.
“This is a positive development and we commend Congressman (Reynaldo) Umali (of Mindoro Oriental) for acting swiftly on a very pressing issue affecting millions of our countrymen,” said Bayan Muna Rep. Carlos Isagani Zarate.
The opposition lawmaker called on Meralco to defer its planned power increase until all legal and technical studies on the issue are resolved, saying that the rate increase is “obviously artificial and contrived” and that a refund for overcharging could be very unfair to consumers.
Zarate also assailed Malacañang for its “unabashed defense” of the planned huge power rate increase of Meralco which ranges from P3 to P3.50 per kilowatt-hour. The Palace last week said the increase is neither “arbitrary” nor “unreasonable.”
“What kind of government is this that it would rather defend the profits of big companies rather than work for the welfare of the people?” Zarate asked.
“This planned power rate increase is obviously artificial and contrived, considering that the supposed ‘maintenance shutdown’ of the Malampaya natural gas plant between Nov. 11 (and) Dec. 10 was scheduled long ago. Other cheaper sources could have been used to compensate without imposing additional burden on our people,” Zarate said.
“There is supposed to be an energy plan being implemented by the Department of Energy and the Energy Regulatory Commission (ERC). If it is so, then this power rate increase is also clearly planned. An investigation is definitely in order, considering that we have had enough calamities for the year. Meralco should not be callous by adding more to our woes,” Zarate said.
The Bayan Muna lawmaker likened the present situation to that of last year’s threat of rotating brownouts by power distribution companies allegedly due to simultaneous maintenance of power plants.
“We should be wary of this supposed scheduled maintenance of power plants as they are deliberately aimed at manipulating the prices of the Wholesale Electricity Spot Market,” he added.
He also called on the regulators, particularly the Energy Regulatory Commission, “to keep their eyes wide open and put their ears on the ground and watch out for signs of price manipulation.”
“Since the maintenance of the Malampaya power facility was scheduled months ago, it is gravely suspicious why the DOE did not find alternative sources to compensate for it,” he said.
The lawmaker added: “Repairs and maintenance of power plants are scheduled events. There is no reason bakit kailangang magtaas ng singil sa kuryente sa tuwing gagawin ito. The effect of this is to constrict supply and therefore jack up prices in the spot market.” source
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