Wednesday, May 07, 2008 Power rate cut in metro to affect consumers By Carlo P. Mallo
DAVAO City Councilor Peter Laviña doubts if the President's move to lower the rate of electricity being sold by Napocor to Meralco, the power distribution company in Metro Manila, will actually be helpful to the country.
"Definitely Napocor will incur losses, and who will bear that? The people in the provinces," Laviña said in an interview Tuesday.
He said most power distributors in the country usually charge their system's losses to consumers.
President Gloria Macapagal-Arroyo has ordered Napocor over the weekend to lower the rate at which it is selling to Meralco in order to decrease the electricity rates in Metro Manila.
At present, Meralco sources some of its power supply from the Wholesale Electricity Spot Market, were electricity costs much lower.
Laviña said he fears the proposed reduction of power rates in Metro Manila will bring up the cost of electricity in the provinces, including Davao City.
