PEZA finalizes rules to bring down power costs in ecozones

The Philippine Economic Zone Authority (PEZA) is finalizing guidelines that would bring down the cost of power in the country’s ecozones, an energy official said.

Energy Undersecretary Melinda Ocampo said the guidelines would entice companies to register with PEZA and enable them to enjoy the reduced rates.

Ocampo said the provision of lower rates in the economic zones is consistent with the government’s thrust to bring down the price of electricity and make it at par with that of neighboring countries.

The energy official said they could release the guidelines after the Department of Justice issues an opinion giving PEZA regulatory powers over electricity providers in special economic zones. 

The DOJ opinion will effectively remove the Energy Regulatory Commission’s authority over power firms operating in the ecozones. 

She said PEZA has also issued a circular declaring and affirming the agency’s regulatory powers in the provision of electricity in the economic zones. 

According to Ocampo, PEZA has formed a technical committee to come up with the rules and regulations of the circular.

The Department of Energy and PEZA have been working together to cut electricity rates in four government-owned economic zones — Bataan, Cavite, Baguio and Cebu — to attract more investors.

The energy official said DOE and PEZA will also look at the possibility of expanding the reduction in power rates to privately-owned ecozones.

PEZA earlier assured investors that the power rate reduction could be around P1 per kilowatthour before the end of the year.

She said PEZA is also looking into the possibility of speeding up the implementation of open access in ecozones so that locators would be able to choose their preferred electricity suppliers early.

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