Public slams petition for power rate hike

CEBU, Philippines - The first day of the Energy Regulatory Commission- initiated public hearing on the power rate hike kicked off with strong opposition from consumer and business groups and even local government units.

The hike was proposed by the National Power Corporation and its co-applicant, the Power Sector Assets and Liabilities Management Corporation.

Lito Vasquez, secretary general of Freedom from Debt Coalition-Cebu, said they will file a motion to recall the previous order of ERC dated February 16, 2009, which granted a provisional authority to Napocor to hike the rates in Luzon, Visayas and Mindanao.

In yesterday’s hearing, ERC Commissioner Rauf Tan said they listened to the sentiments of all sectors and it is reportedly possible that more public hearings will be conducted nationwide before Napocor decides on the Napocor application.

The Social Action Center for the Bacolod Diocese, which comprises 69 parishes in Negros Occidental, also expressed its strong opposition to the hike, saying that the power rate hike is “a highly oppressive imposition for power consumers.”

Meanwhile, Armando Bordamonte Jr. of FDC asked ERC to deny the application of Napocor and to reduce Napocor;s generation rates.

FDC, whose affiliates groups conducted a protest rally yesterday, also asked ERC to furnish them the complete annexes and documents used to support their application so that intervenors could adequately prepare their opposition.

Napocor and PSALM officials are expected to attend in the second day of the public hearing today to present evidence to support their application for a hike.

Last February 16, 2009, the ERC provisionally authorized Napocor to increase its basic rates by an average of P0.4682/kWh for Luzon; P1.1460/kWh for Visayas; and P0.7147/kWh for Mindanao.

Power rate in the Visayas has increased by P1.1460 per kilowatt hour making it P4.0339 per kilowatt hour from P2.8879 per kilowatt hour, starting on the February 26 to March 25 billing of Napocor.

As a result of such provisional increase, the Visayan Electric Company Inc. announced that starting April 2009 billing, electric consumers in Metro Cebu will pay an additional 90 centavos (or P0.9346) per kilowatt-hour as a rate increase would be put in place following Napocor’s hike in generation charge.

ERC, however, said the provisional rates may still change depending on the outcome of the hearings and the evidences to be submitted by Napocor and PSALM.

ERC also pointed out that if it turns out in the final evaluation by ERC that NPC and PSALM are not entitled to the adjustments provisionally authorized, NPC and PSALM would be obligated to refund any excess in recoveries. — Mitchelle L. Palaubsanon/JMO(THE FREEMAN)