Published
By Myrna M. Velasco
Power utility giant
Manila Electric Company (Meralco) is being demanded to provide an all-inclusive
explanation on its calculated P0.08 per kilowatt hour (kWh) rate hike
attributable to tax rates prescribed under the Tax Reform for Acceleration and
Inclusion (TRAIN) Act.
Meralco has indicated
to media that such will be in view of the combined cost impact of the
re-imposition of value added tax (VAT) on the wheeling charge of the National
Grid Corporation of the Philippines (NGCP) and the higher excise taxes on coal
as fuel for electricity generation.
Energy Secretary
Alfonso G. Cusi told reporters that he sent a formal correspondence to Meralco
to let them flesh out the premise of their rate hike calculations.
“Meralco – they’re
saying the increase is P0.08 per kWh (for transmission and coal tax), now you
ask me, how much will it cost? I cannot just say, it’s P0.08 per kWh, it is
wrong to assume,” he said.
Cusi noted this is the
reason why he wants to get to the bottom of the utility firm’s cost impact
estimates, thus, he is seeking formal explanation from them.
“So what I did, I asked
Meralco how did you arrive at the R0.08 per kWh, that’s what we have been
talking about so far,” he averred.
And within the
Department of Energy (DOE), the energy chief noted that he similarly gave out
instructions to his team to have the media-published calculation of Meralco be
carefully examined and re-validated.
“That’s what is being
done by (Undersecretary Jesus Cristino) Posadas, to scrutinize it, because I
will not just accept it,” Cusi stressed.
He further explained
that the role of the energy department is to protect the consumers, adding that
“we set the policy, we make sure that everybody will follow the policy and it
is implemented to the letter.”
Even on cost
assumptions being floated on the impact of fuel price hikes on the Small Power
Utilities Group (SPUG) of the National Power Corporation, Cusi noted that he
wants that thoroughly studied.
“I will not just accept
it and tell it to you that this is the cost impact – this is why I need help. I
want to know what is the generation cost in the SPUG areas and what is being
charged to the public,” he said.
On energy cost hikes
from TRAIN taxes, Cusi noted that he wants that calculated extensively as well
so consumers will not just be unduly charged – either in the subsidy component
of the SPUG rates or on the direct cost being passed on in the electric bills
relative to the use of fuel for power generation.”
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