Palace official sees lower power rates after a month

While the Manila Electric Co. (Meralco)’s power rates are going up this month, Malacañang expects the power rates to go down by next month. In an interview on government-run dzRB radio, presidential spokesman Edwin Lacierda said the rate hike was partly due to a problem with the supply of power. “We’re confident by next month bababa uli ang cost (We’re confident the cost will go down again by next month)," he said, but did not elaborate. Meralco’s electricity rates are to go up this month due to an increase in power supplier costs. From P5.21 per kilowatt-hour in September, Meralco’s generation charge rose by P0.14 to P5.35 per kilowatt-hour in October. In a disclosure to the Philippine Stock Exchange last Friday, Meralco said electricity bills in its franchise area will reflect a net 9.19-centavo per kilowatt-hour (kwh) increase. It said the generation charge component, which it collects for its power suppliers, will rise by 14.19 centavos per kwh, but this hike will be partly offset by a 5-centavo decrease in the distributor's own charges, resulting in a lower net increase. Earlier reports quoted Meralco as saying the increase in the generation charge is due to the use of more expensive liquid fuel by First Gen Corp.’s natural gas plants, following a supply restriction at Malampaya natural gas field from September 22 to 25. Clamor for lower power rates Meanwhile, the business sector has joined the clamor of energy consumers for lower energy rates. According to the Philippine Chamber of Commerce and Industry (PCCI), businesses in the Philippines are suffering because of the high costs of electricity. "We have reached that point na talagang problema na 'yan. So anything more will cause companies to shut down, some companies [to] downsize," PCCI Chairman Sergio Ortiz Luis said in an interview on "24 Oras"
Groups of businessmen and workers gathered in a hotel in Makati City last Friday to urge President Benigno Aquino III to suspend hearings for the increase petitions filed by the National Power Corporation (NAPOCOR). Also last Friday, members of the militant group Sanlakas staged a protest action in front of the Energy Regulatory Commission (ERC) office in Ortigas, also in protest of the high electricity charges. An ordinary household in Metro Manila currently spends P10.38 per kilowatt hour (kwh) on average, which sees another increase once the ERC approves the two pending petitions filed by NAPOCOR. The petitions are asking for:

• an additional 39 centavo per kilowatt hour (kwh) that will be used to settle the debts acquired by NAPOCOR; and
• another 12 centavos per kwh to fund renewable energy.

ERC Executive Director Francis Juan assured the public that there will be no energy price hikes any time soon because they're still studying the petitions. Under the Electric Power Industry Reform Act (EPIRA) of 2001, consumers will be charged for the "stranded debts," which it defined as "any unpaid financial obligation of NAPOCOR that has not been liquidated by the proceeds from the privatization of the generating firm's assets." The PCCI also expressed opposition to the extra 12 centavos for renewable energy, but its advocates argued that electricity from alternative sources will be good in the long run, not only for consumers, but also for the environment. "In two to five years' time, the rates of biomass and hydro[electricity] will be much lower and cheaper than the conventional sources of electricity," said Jose Silvestre Natividad of the Philippine Association of Small Scale Hydropower.— with Rose-An Jessica Dioquino/LBG, GMA News