Malacañang not keen on subsidizing power rate

Implementing a general subsidy on power rates using proceeds from the Malampaya natural gas project will mire the Philippine government in more debt, Malacañang said Tuesday. Congress has already passed the law extending the lifeline subsidy on electricity for poor consumers, Presidential Communications Development and Strategic Planning Secretary Ramon Carandang said, A comprehensive power rate subsidy is “not a sound policy" as shown by the Oil Price Stabilization Fund (OPSF), which had to be abolished during the Ramos administration because it incurred a lot of debt for the government, Carandang said. “It’s the same thing with power. We are not contemplating on a broad subsidy for electricity. That is not being discussed," he said. Government is still willing to take a look at the proposal, which was given by Sen. Ralph Recto. “I’m not shutting the door on that. I’m just saying as a general rule we don’t really think that’s productive over the long-term," he said. — VS, GMA News