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In a bid to moderate the impact of high energy prices in the
country, the government plans to subsidize power costs of low-income
consumers and industries.
Energy Secretary Angelo Reyes told participants
to the Philippine Economic Briefing on Friday that the government
will subsidize power costs of low-income consumers.
“We will ensure preferential treatment for
poor households and power-intensive industries in the distribution
of Transco [National Transmission Corp.] charges by Meralco [Manila
Electric Co.],” Reyes said.
Socioeconomic Planning Secretary Augusto Santos
agreed, saying power is the major input to the country’s export
industries, particularly electronics.
“Lower electricity rates will help industries
to cut their expenses,” Santos added. Electricity accounts for
nearly 50 percent of total operating costs for some firms.
President Gloria Arroyo earlier expressed
concern about electricity prices that consumers and industrial users
pay for, and promised to bring power costs to be what is the average
for Southeast Asia.
“We are eager to move along the privatization
of Napocor [National Power Corp.]. Not only will it enable open
access, it will also free the government of its subsidy and allow us
to use the windfall proceeds to subsidize power costs,” President
Arroyo said.
Privatization process under review
Reyes said the government is reviewing the
privatization process of power generation assets to fast-track the
sale and immediate implementation of open access and retail
competition.
He added that for this year, the government
plans to privatize 11 power plants operated by state-owned Napocor.
The plants that have been lined up for
privatization are the decommissioned Bataan Thermal Power Plant in
Limay, for April; Tiwi Geothermal Power Plant in Albay and MakBan
Geothermal Power Plant in Laguna, for May; and the Amlan
Hydroelectric Power Plant in Negros Oriental, for June.
Also on the list are the Limay Combined-Cycle
Power Plant in Bataan, Palinpinon Geothermal Power Plant
in Negros Oriental, and Panay Diesel Power Plant in Iloilo, for
July; Leyte Geothermal Power Plant in Tongonan and Bohol Diesel
Power Plant in Tagbilaran City, for August; BacMan Geothermal Power
Plant in Sorsogon, and Iligan Diesel 1 and 2 in Dalipuga, for
September; Subic-Zambales Diesel 2 in Olongapo City, for November;
and the Aplaya Diesel Power Plant in Misamis Oriental, GenSan Diesel
Power Plant in South Cotabato and Navotas 1 and 2 Diesel, for
December.
Reyes said to help further lower the cost of
electricity in the country, the government needs priority bills such
as those on renewable energy, energy conservation, natural gas,
liquefied petroleum gas and the Transco Franchise bill.
-- Darwin G. Amojelar
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