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By Efren L. Danao, Senior Reporter
A study by the
University of the Philippines showed the Manila Electric Company (Meralco)
was charging its customers nearly a peso more per kilowatt-hour,
Sen. Miriam Defensor Santiago charged Wednesday.
Santiago, co-chairman of the Joint Congressional
Power Commission (PowerCom) said the study showed Meralco’s high
rates came about because of its contracts with independent power
producers (IPPs) and its participation in the wholesale electricity
spot market (WESM).
The PowerCom asked the UP researchers to
determine the least cost of power supply from Meralco’s total
system demand and to evaluate its performance in its power supply
purchasing activities.
Credible UP study
The UP researchers were Professors Rowaldo del
Mundo, Allan Nerves, Bienvenido Malquisto Jr., Ivan Benedict Cruz
and Edna Espos. They used information submitted by Meralco, the
National Power Commission, and the Energy Regulatory Commission as
required by PowerCom to find out why the private utility’s power
rates are high.
“I find the report reliable because the UP
researchers first developed a computer-simulation model,” Santiago
said.
She said the study rejected Meralco’s claim
that the effective rates will become lower if it buys more from its
independent producers, because of the transmission factor.
“To bring down power rates, Meralco should buy
more from National Power Corp. and less from its IPPs. It should
also minimize its participation in the WESM,” she said.
She said that if these two measures are taken,
Meralco rates per kilowatt-hour would be lower by 98 centavos.
She explained that because Meralco participates
in the wholesale spot market, it had to pass on to consumers 23
centavos more per kilowatt-hour.
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