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WHY just
us?
Ivanna
de la Peña, vice president and head for utility
economics of Manila Electric Co. (Meralco), asked this
question when the Department of Trade and Industry (DTI)
filed a petition suggesting that the country’s largest
power distributor should absorb the lifeline-rate
subsidies for power users consuming less than 100
kilowatt-hour (kWh).
De la
Peña said Meralco would have to quantify the impact
should the Energy Regulatory Commission (ERC) rules in
favor of the DTI.
The
lifeline subsidy of Meralco had already amounted to P250
million in March, de la Peña said.
“That’s
for Meralco. But other distribution utilities and
electric cooperatives also have lifeline subsidies which
are covered by the Electric Power Industry Reform Act [Epira],”
said de la Peña.
She said
the ERC should determine who the marginalized users are.
It currently covers those consuming 100 kWh and below,
who represents 40 percent of power consumers.
De la
Peña said Meralco is collecting P1/kWh for distribution,
supply and metering.
She
added that Meralco did not earn a reasonable return last
year after only having a return-on-rate base of 6.9
percent.
On
Friday the DTI filed a petition with the ERC to order
the refund of the lifeline subsidy given by bigger
customers of Meralco under the company’s lifeline
rate-discount program.
In its
petition, the DTI noted that there is no provision in
the Epira that authorizes a lifeline subsidy to be paid
by other classes of consumers and that any implementing
rules or resolutions of the commission to the contrary
are void and not authorized by law.
Meralco’s current lifeline-subsidy program makes bigger
customer classes shoulder the discounts given to
marginalized customers.
The DTI
said Meralco should shoulder the subsidy.
The
petition stated that the discounts granted to certain
classes of consumers were held valid by the Supreme
Court for reasons of public interests, such as the
discounts to senior citizens.
It added
that the discounts granted to certain classes of
consumers should be absorbed by the establishments, and
Meralco must not be extended a different privilege, it
being a business engaged in a public utility and imbued
with public interest.
The DTI
also petitioned the ERC to allow the expansion of the
lifeline subsidy to 150 kWh from the current 100 kWh.
The
proposal includes increasing the discounts to 60
percent, 40 percent and 30 percent for those consuming 0
to 50 kWh, 51 kWh to 70 kWh, and 71 kWh to 100 kWh,
respectively.
Or, it
said, the consumption block may be increased to 150 kWh,
and spread out the discounts equitably. Thus, from 0 to
50 kWh the discount is 50 percent; 51 kWh to 100 kWh, 35
percent; and 101 kWh to 150 kWh, 20 percent.
Currently, Meralco lifeline-rate users consuming to 50
kWh, 51 kWh to 70 kWh and 71 kWh to 100 kWh receive
discounts of 50 percent, 35 percent and 20 percent,
respectively. |
