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Thursday, May 22, 2008

 

Palace approves interim 
open access in power sec tor

By Darwin G. Amojelar, Reporter

MALACAÑANG has approved an interim open access scheme under which large electricity consumers like manufacturers could enjoy lower power rates, a high-ranking government official said Wednesday.

“In the desire of government to lower electricity costs, the Cabinet approved an interim open access scheme where consumers with an average peak demand of at least one megawatt can connect directly to power generation firms,” Acting Socioeconomic Planning Secretary Augusto B. Santos told reporters.

The government approved the interim open access in a Cabinet meeting on Tuesday in Panglao, Bohol.

Besides big industrial and commercial firms, an interim open access will benefit consumers as companies would reduce production costs, Santos said.

Once the open access scheme is enforced, distribution charges, which run up to 20 percent of electricity bills, and system losses, could be reduced, the official said.

The Electric Power Industry Reform Act (Epira) of 2001 provides for an open access that would allow consumers to choose their suppliers. But under the law, this could only be implemented if the government has already privatized at least 70 percent of its generation assets.

At present, state-run Power Sector Assets and Liabilities Management Corp. has privatized about 40 percent of the generating and contracted capacity of state-owned National Power Corp.

With the sale of the Tiwi-Macban geothermal plant in Albay and the Palinpinon geothermal facility in Negros Oriental this year, “we can overshoot the 70-percent target under Epira,” Santos said.

He said the interim open access scheme still requires approval from the Energy Regulatory Commission.

  
 

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