PB asks ERC to help lower power costs

CEBU, Philippines - The Cebu Provincial Board has requested the Energy Regulatory Commission through the Department of Energy to find ways and means to reduce power costs.

Rather than acting on petitions for power rate adjustments resulting to power rate hikes, the provincial board believes effective measures such as programs and incentives could also help. PB Member Thadeo Ouano’s resolution calling for cost-cutting measures was passed yesterday in its regular session presided by acting Vice Governor Julian “Teban” Daan.

“DOE needs to formulate a program that could generate more effective competition in the industry in order to achieve comfortable levels of power supply cost and among others, a set of incentives that could attract investments in the power sector,” Ouano said.

Another round of power rate hike was recently submitted for deliberation and approval by the ERC.

Various consumer groups coming from the business sector, academe and labor groups have also submitted their objections stating the negative impact on the cost of production of industrial players and purchasing power of the middle and low income groups.

Ouano said that ERC has the power to review and evaluate the producers’ power generation and delivery costs which can still be controlled and reduced. He pointed out that electricity in other Asian countries is generated at a much lower cost and delivered more efficiently.

“Any increase in the cost of electricity will create a chain of demands for increases in the cost of consumer items and salaries and wages,” he said.

Ouano pointed out that the country is blessed with alternative and renewable sources of energy which are not only environment-friendly but also generate power at lower costs and therefore can deliver less expensive electricity.

Copies of the said resolution will also be furnished to Department of Energy, House of Representatives, Philippine Chamber of Commerce and Industry, Philippine Steelmakers Association, Philippine Exporters Confederation, Inc., Trade Union Congress of the Philippines and Foundation for Economic Freedom and Trade for their information and appropriate action. (FREEMAN)

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