Wednesday, May 28, 2008 Reyes to convene another power stakeholders' meet
ENERGY Secretary Angelo Reyes will set up another power stakeholders' meeting on Wednesday to discuss possible reduction further of generation and distribution charges in the country.
Reyes said the agenda will include discussions on potential rate reductions in the implementation of the time-of-use (TOU) rates from the distribution utility to end-users. Time-of-use refers to pricing electricity based on the time it was consumed.
Participants in the meeting will also discuss ways to intensify the adoption of a demand side management program and other energy-efficient programs, ensure the compliance of distribution utilities in passing on the full P0.30 per kilowatt hour (kWh) mandated rate reduction being implemented by the National Power Corporation (Napocor) pursuant to the Electric Power Industry Reform Act (Epira) of 2001 and review other remaining cross-subsidies embedded in the rates of end-users.
The meeting is the seventh in a series of talks among power stakeholders aimed at developing a collaborative approach to attain the goal of reducing power rates in the country.
Reyes said the meeting's main objective is to "create harmony and common understanding among the various sectors in the electric power industry in order to attain the goal of reduced power rates for each and every Filipino."
Expected participants in the power stakeholders' meeting are former energy undersecretary Melinda Ocampo, Napocor president Cyril del Callar, National Transmission Corporation (NTC) president Art Aguilar, Power Sector Assets and Liabilities Management Corporation (Psalm) president Jose Ibazeta, National Electrification Administration (NEA) head Edita Bueno, Philippine Economic Zone Authority (Peza) director general Lilia de Lima, Finance Undersecretary Jeremias Paul, Manila Electric Company (Meralco) president Jesus Francisco, Energy Regulatory Commission Chairman Rodolfo Albano Jr., Federation of Philippine Industries chairman Meneleo Carlos Jr., and Semiconductor and Electronics Industries in the Philippines Inc. executive director Ernesto Santiago.
The previous consultative meetings have resulted in power rate reductions for industry customers operating within the economic zones in the country.
The meetings have yielded a reduction in the generation cost of Meralco industrial customers from Meralco blended generation rates to direct Napocor discounted rates, reduction of transmission costs due to reduction in generation costs, reinstatement of Meralco's high load factor discount of P0.22 per kWh and Meralco's reduction of its systems loss charges to customers with primary metering. The equivalent monetary benefits or savings generated from these accomplishments total to P1.0294 per kWh.
"What we have accomplished so far is just one step towards achieving the common objective of reducing power rates for the consuming public and for industries so that they can compete globally," Reyes stated.
"The Department of Energy's (DOE) primary concern is to provide adequate and reliable supply of electricity and to make electricity rates competitive. Towards this end, I have convened the Power Stakeholders' Meeting to serve as a venue for all industry players in the power sector, including end-users, to discuss and resolve issues between and among stakeholders. These meetings are also aimed at enabling an environment conducive to private investments and protecting electricity consumers, particularly marginalized end-users from high electricity rates," Reyes added. (AH/Sunnex)
