Cheaper power needed to spur economy — Villar

Cheaper electricity coupled with low interest rates are needed to attract new investments into the country and boost the economy, Senate President Pro Tempore Manny Villar said yesterday.

"The issue on the Purchased Power Adjustment (PPA) must not be viewed merely from a debt point of view by government," Villar said.

"Lowering power rates will have a tremendous impact on the national economy as it will create jobs and employment opportunities," he added.

Coupled with lower interest rates, which have already gone down significantly, Villar said that cheaper power would make the Philippines a competitive investment site. "Power costs are a major consideration of investors," he pointed out.

The Board of Investments reported an 82.48-percent drop in investments for the first three months of the year compared to the previous year. The Philippine Economic Zone Authority (PEZA) likewise posted a 73.75-percent dip in investments registered with the agency for the same period.

"We must pursue the lowering of power rates if we want to attract the needed investments to move the country forward," Villar said.

The senator said that all proposals aimed at lowering power costs in the Senate must be given due course. "There is nothing wrong with combining all the solutions to bring down power rates being proposed in the Senate. We must have an open mind and work together on this very important matter," he said.

"It must also not be forgotten that the country has an excess 5,000 megawatt production that we should find use for," reminded Villar.

Villar has filed a bill at the Senate that will allow consumers to use more electricity without the added cost. He explained that since consumers pay for the country’s excess power production via the PPA, they should be allowed to use up what they are paying for. This, he pointed out, will effectively lower the cost per unit of electricity.