ATTEMPTING to replicate the government’s thrust of bringing down power rates to industries in the Philippine Economic Zone Authority zone to the general consuming public, Energy Secretary Angelo Reyes said on Wednesday the government is still examining how it will be able to bring the rates down to residential consumers.

“We are concerned over ensuring that the power rates for the general consuming public will be affordable. In other words, consumer protection. And that industries enjoy afforded rates that will make them competitive in the global market,” Reyes said in a press conference.  He added the Department of Energy (DOE) does not want to aggravate the condition of consumers by increasing power rates any further.

Reyes said the DOE is also pursuing the implementation of the Time-of-Use (TOU) rates at the distribution sector, as well as intensifying the implementation of the demand-side management such as energy conservation and efficiency measures.

Reyes said he has also urged the National Power Corp. (Napocor) to monitor the compliance of distribution utilities in the passing on of the full 30-centavo per kilowatt-hour (kWh) mandated rate reduction (MRR) in pursuant to the Electric Power Industry Reform Act (Epira).

Reyes also said he is calling for public and private power generators, transmission company, distribution utilities to discuss, among many other things, the implementation and compliance to the early instructions of the President regarding power rates.

In a separate statement, Napocor said it welcomed the order of President Arroyo to adjust the rates it charges the Manila Electric Co. (Meralco) to P4.11/kWh.

Napocor said President Arroyo issued the order in a speech on Friday, May 2, before the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII).

“The rate that President Arroyo mentioned is the same rate that we charge our customers in Luzon, comprising of electric cooperatives, outside the Meralco franchise area, which was approved by the Energy Regulatory Commission [ERC] in 2004,” said Napocor in a statement.

Napocor explained that even without President Arroyo’s order, Meralco can already lower the rates it charges end-consumers under National Power’s existing ERC-approved TOU rates.

“It all depends on Meralco’s purchasing mix. Since end-consumers cannot directly avail [themselves] of Napocor’s TOU rates, Meralco can optimize its benefits by adjusting the level of electricity it buys from its various sources. It can opt to improve its load pattern from Napocor, by also buying from its electricity during off-peak, when power rates are very low, and not only during peak times when electricity rates are quite high,” the statement said.

Napocor explained that this is how electric cooperatives in Luzon outside the Meralco franchise area are able to enjoy the P4.11/kWh rate, that sometimes even go lower, because they buy more from Napocor both during peak and off-peak times.

Napocor also pointed out that the rate Meralco showed in its full-page ad does not include, among others, the Power Act Reduction (PAR) of P0.30/kWh that only Napocor grants to residential consumers that buy power from the generation company.

Also, Meralco should have explained what time they buy power from each source, and at how much, considering that Napocor is offering or charging them based on the ERC-approved Time-of-Use rates, which only averages between P1.8744/kWh during off-peak, and P6.06/kWh during peak, compared with their IPPs, which charges them at an average rate of P4.4744/kWh.

“The benefits to end-consumers will be more immediate, compared [with] when we are required to file before the ERC a new rate specifically for Meralco in the amount of P4.11/kWh. We have to undergo the process of application, public hearings and decision by the commission,” Napocor said.

Napocor also explained that there could be financial implications to the power company, if and when the proposed rate adjustment will be implemented.

ATTEMPTING to replicate the government’s thrust of bringing down power rates to industries in the Philippine Economic Zone Authority zone to the general consuming public, Energy Secretary Angelo Reyes said on Wednesday the government is still examining how it will be able to bring the rates down to residential consumers.

THE Department of Energy (DOE) on Wednesday awarded five petroleum exploration service contracts (SCs) to four Filipino oil exploration companies composed of Miocene Mining and Energy Corp. (MMEC), Helios Petroleum and Gas Corp. (HPGC), Burgundy Global Exploration Corp. (BGEC) and NorAsian Energy Ltd. (NEL).  

The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday revealed that it has proposed a P2 additional fuel subsidy for transport sector to cushion the impact of the rising fuel prices.

SEN. Edgardo Angara called on the United Nations to consider the elimination of export subsidies and reduction of domestic subsidies of rich countries, as he blamed the prevailing trade imbalance for the looming global food crisis.

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