Sunday, May 04, 2008 Gov't studies use of Meralco stake to bring down power rates
THE government said Saturday it will study suggestions to use its 33-percent share in Manila Electric Co. (Meralco) to initially bring down soaring electricity rates.
Executive secretary Eduardo Ermita also called on Meralco and other stakeholders in the power industry to "have a conscience" and find ways to bring down power rates as well.
"Malaki ang share ng gobyerno niyan, meron tayong members ng board sa Meralco ... Tinitingnan natin iyan (Government has a relatively large share in Meralco, and it has board members there. We're looking at that possibility)," Ermita said over dzRH radio.
Government holds some 33 percent of Meralco stock. Of this, 23 percent belongs to the Government Service Insurance System (GSIS).
Still, Ermita said that even without government using its share to "control" Meralco, President Gloria Macapagal-Arroyo already ordered them to find ways to bring down power rates.
He noted the President already ordered secretaries Angelo Reyes (energy) and Margarito Teves (finance) to submit the appropriate petition to the Energy Regulatory Commission (ERC).
"Wala pa akong detalye kung gaano kalaki ang share pero nasa isip ng pangulo kung paano matulungan natin (I do not have the full details now of how government can use its shares, but the bottom line is that the president ordered everyone to help those affected by soaring power rates)," he said.
"(Ang utos niya) magawa ng paraan paano maibaba ang singil ng elektrisidad lalo sa kababayang medyo di ginhawa sa buhay at sa covered industry at PEZA locators na nirereklamo ng investors (Her orders are to find ways to bring down power hikes especially for the poor and for covered industries and locators in the Philippine Economic Zone Authority whose investors are complaining of high power rates)," he added.
Last Friday, Arroyo called on businessmen to rally for lower power costs and prepare to legally convince the regulatory agency on their petition.
She noted that the private sector stands to benefit from these petitions, but told them to brace for a "tough legal fight."
Arroyo also reiterated a proposed petition to prohibit the system loss of power distributor Meralco from being charged as a separate item.
"I have been wondering aloud why power costs in Luzon, in the Luzon Urban Beltway, where many of you operate, should be so high when Luzon is reliant on imported oil for only 1% of its power. And therefore we know there is room for improvement in the rates," she told a gathering of business leaders in Makati City.
Arroyo said she has ordered state-owned National Power Corp. (Napocor) to charge Meralco only P4.11 per kilowatt-hour (kwh), the same rate it charges Luzon electric cooperatives, instead of the P6 to P10 per kwh at which Meralco has been buying from Napocor and from wholesale electricity spot market at peak hours. (JMR/Sunnex)
