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Saturday, May 24, 2008

 

Trade wants Meralco’s lifeline
cross-subsidy removed

By Euan Paulo C. Añonuevo, Reporter

Nowhere in the Electric Power Industry Reform Act (EPIRA) of 2001 does it say that other consumers should pay for subsidies being given by Meralco to its marginalized customers, the Department of Trade and Industry (DTI) asserted in the omnibus petition it filed before the Energy Regulatory Commission (ERC).

Instead of passing subsidies to its other customers, DTI said Meralco should absorb these costs and refund its users as well as expand its lifeline coverage to 150 kilowatt-hours. “There is no provision in RA 9136 authorizing a lifeline subsidy to be paid by all other classes of consumers,” it said.

At present, Meralco customers consuming less than 100 kilowatt-hours of electicity are shouldered by larger power users under the giant distribution utility’s lifeline rate discount program.

DTI asked ERC to compel Meralco to extend preferential treatment to poor households and provide incentives to power-intensive industries in the allocation of transmission charges, without prejudicing other classes of consumers, in accordance with the EPIRA.

DTI also asked ERC to order Meralco to be prudent in its purchase of electricity by buying from the Wholesale Electricity Spot Market (WESM) during off-peak hours when prices are cheaper; to charge distribution rate at least equal to or lower than the distribution charges of other utilities; and stop recovering system loss “as RA 7832 is vague and therefore, void for lack of legal basis.”

President Gloria Arroyo earlier directed the DTI to file a petition before the ERC for a number of proposals at the Philippine Energy Summit early in the year in hopes of trimming Lopez-controlled Meralco’s electricity charges.

  
 

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