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IF the
current weather condition will continue to improve
throughout the month, consumers may see relief from
paying high electricity rates.
“The
supply situation is expected to improve in May owing to
improvements in coal-capacity availability as compared
to March when several coal plants went out of commission
for maintenance works,” said Lasse Holopainen, president
of the Philippine Electricity Market Corp. (PEMC),
operator of the Wholesale Electricity Spot Market (WESM).
The PEMC
official pointed out that the rains have increased the
availability of the country’s hydroelectric power plants
and also suppressed the demand for electricity to power
air conditioners and electric fans.
In April
electricity being traded at the WESM averaged P5.72 per
kilowatt-hour (kWh), which is relatively lower than the
average of P6.72/kWh in March.
As a
practice, power rates are charged to consumers 30 days
after being billed to their respective distribution
utilities.
“If our
anticipation is correct, power rates should go down next
month,” said Holopainen.
This
month’s power demand is projected to reach 6,760
megawatts (MW) from 6,619 MW in April. But with the
typhoon season expected to come in earlier than
expected, Holopainen said consumption may be lower than
projected.
The WESM
executive said two things drive electricity
consumption–temperature and economic growth.
The
Philippine Atmospheric, Geophysical, and Astronomical
Service Administration earlier reported that the onset
of the rainy season may be expected this month.
With the
anticipated reduction in the temperature, PEMC executive
vice president Mario Pangilinan estimated a 100-MW
change for every degree change in temperature.
Indications show that the consumption forecasts this
month may be achieved.
In
another development, Holopainen reiterated a proposal to
set up an Independent Power Producer Administration so
the government can exit from the power generation
business and allow open access.
“We
already have the suppliers lined up, we have the captive
market and all we really need is the implementation of
the Electric Power Industry Reform Act (Epira),” said
Holopainen, pointing out that the power industry remains
to be publicly led and thus, uncompetitive.
He
emphasized that the power industry remains regulated
with 95 percent of the electric components being
monitored by the government. “With more competition, it
will not matter whether the power distributors get 10
percent, 20 percent or even 50 percent from whomever, it
will just matter where you’ll be able to get electricity
at a lower price. Otherwise you lose customers. This is
a difficult predicament for distribution franchise
because you are captive with a lot of pressure to make
sure that you get lower prices with no incentives right
now,” said Holopainen.
Meanwhile, the Freedom from Debt Coalition (FDC)
enjoined other stakeholders in the power industry to
find ways to relieve consumers from the burden of high
electricity prices.
“Filipinos, rich and poor alike, pay the second-highest
electricity rates in Asia. Thus, any move by the
government to reduce exorbitant power rates in the midst
of a devastating food crisis and the rising costs of
other goods and services, is welcome news to our
people,” FDC said in a statement.
FDC said
it believes that that piecemeal and selective action
such as the bid by the government to cut down
distribution rates of Manila Electric Co. (Meralco) will
not bring any significant reduction in charges.
Distribution utilities (DUs), such as Meralco, are just
one part of the many problems on why the country has one
of the highest electricity rates in the world. Hence,
while supportive of moves to check on DU’s unjust rates,
FDC renews its call for the reduction of electricity
rates in the country through the cancellation of onerous
IPP contracts.
Covered
with sovereign guarantees and “take-or-pay” provisions,
FDC said, these contracts sank the National Power Corp.
deeper into debts, debts that were passed on to
consumers through their electric bills. In addition,
Meralco’s contracts with its own independent power
producers have the same “take-or-pay” provisions.
FDC also
urged the removal of the 12-percent VAT on power, saying
it “is unfair and unjust.” |
