Miitant groups hit power rate hike

Militant groups warned yesterday of massive protests against the Arroyo administration if the Manila Electric Co. (Meralco) pushes through with a proposed 116 percent or P3.97 per kilowatt hour (kwh) increase in power rates.

Meralco president Jesus Francisco was quoted as saying their petition with the Energy Regulatory Commission (ERC) was for an increase of 30 centavos per kilowatt hour.

The petition has been pending since it was filed in April 2000, he added.

But Rodolfo Sambajon, chairman of Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), urged electric consumers to join the massive street protests.

Meralco has shown "insensitivity and greediness for profits" by pushing for an increase in electric rates during times of economic hardship, he added.

Sambajon said militant groups like Gabriela and Bagong Alyansang Makabayan (Bayan) have vowed to hold a series of nationwide protests against the planned electricity rate increase.

The proposed power rate increase is meant to raise Meralco’s profits from 3.8 percent to eight percent so it would earn as much as P16 billion, he added.

Sambajon said around 2.24 million Meralco customers, mostly those consuming 51 to 300 kwh per month will be greatly affected if the proposed hike is approved.

Gabriela said an increase is not necessary because Meralco was already receiving a lot from the Currency Exchange Rate Adjustment (CERA) and the Power Purchase Adjustment (PPA).

Bayan said power rates would rise by as much as 116 percent for residential consumers if Meralco is allowed to "insert" a P3.97/kwh increase in the basic charge.

Meralco is using the Electric Industry Reform Act which mandates the "unbundling" of various charges to "sneak in" a P1.12/kwh increase in the basic charge and P2.85/kwh in other charges.

Meralco also seeks to remove subsidies to street lighting, small and medium scale industries, government hospitals and the "poorest segments" of the consumer base, Bayan added.

Meanwhile, Senate President Pro Tempore Manuel Villar Jr. said yesterday he will seek an investigation into Meralco’s proposal to increase the basic charges in electricity rates.

"Where does the (justification) for the increase come from?" he said. "We have to look into this. What’s happening? If there are inefficiencies (on the part of Meralco and government), we should not pass the burden to consumers."

Villar said he could not understand why power rates would have to be increased when the dollar-peso exchange rate has been stable, fuel prices and interest rates low, and there are no reported hikes in the salaries of Meralco employees.

Officials of Meralco and the National Power Corp. must be summoned to the Senate to explain why they want to increase the rates of electricity, he added.

Sammy Malunes, spokesman for the militant Kilusang Mayo Uno (KMU), said small scale enterprises would pay as much as P6.07/kwh in generation, distribution, metering and supply charges, and medium scale industries P6.78/kwh if the Energy Regulatory Board approves the increase.

"Any power rate hike would definitely increase production costs," he said. "With the economy’s dismal situation, more and more business owners would be forced to cut jobs or close shop since they cannot absorb the rising manufacturing expenses." — With Aurea Calica