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Monday, February 18, 2008

 

PEZA to persist in power
rate cuts despite case

 
STATE-RUN Philippine Economic Zone Authority (PEZA) said its campaign to reduce power rates in economic zones will continue despite a case filed by the Manila Electric Co. (Meralco) seeking to bar the agency from regulating distribution utilities in these areas.

Lilia B. de Lima, PEZA director general, said the government will continue to work on lowering power costs in economic zones while the issue with Meralco awaits resolution.

“We have reduced the rates in Cavite and Bataan by P0.15 and P0.20 per kilowatt hour effective January, as we have unbundled. We’re working with two other economic zones,” she said.

She said state-owned National Power Corp. (Napocor) has implemented a P0.02 to P0.04 per kilowatt-hour discount for businesses with big demand in economic zones Meralco serves.

“There is no delay in the giving of discounts in economic zones,” she added.

Although Meralco has yet to withdraw its case against PEZA, De Lima expects this to be resolved within the next week or so after the Department of Energy completes consultations with all industry stakeholders.

Meralco, along with the Private Electric Power Operators Association (PEPOA), earlier filed a case before the Pasig Regional Trial Court seeking to clarify the Energy Regulatory Commission’s (ERC) jurisdiction over distributors in light of PEZA’s campaign to bring down rates in economic zones.

The petition was filed after PEZA required distribution utilities serving economic zones in Bataan, Cavite, Baguio and Cebu to register with the agency to pass on more than a P1 per kilowatt-hour cut in electricity rates to locators.

The discount was aimed at providing businesses, specially electronics firms, a reprieve from the high rates.

Jesus P. Francisco, Meralco president, said that “regardless of who regulates the rates, prices will remain high if generation rate[s] continue to remain high.”

He said the Lopez-controlled company is proposing to pass on its lowest-cost sourced power to specific customers to reduce their electricity costs.

“What we suggest and if allowed by the ERC, for target group of customers, we will pass through the lowest source of power, [wherever] it is [sourced] –it can be Napocor for one month, First Gas, Quezon Power or whoever,” he said.

He added that although the company cannot commit a fixed rate every month, the government can help businesses by identifying which should qualify under the program.

“Identifying the qualified parties could be done by [the] Department of Trade and Industry,” he said.
-- Euan Paulo C. Añonuevo

  
 

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