Joker won't buy Napocor public assurances on no hike in power bills

MANILA, Philippines – Sen. Joker Arroyo is not buying the National Power Corp.’s line that consumers will not see an increase in their power bill until 2009 despite its petition to seek a basic rate increase.

Arroyo said Malacañang earlier wanted Napocor to reduce its rates to Meralco to pressure it to lower electricity bills of consumers. Thus any basic rate increase may result in higher charges to the public as well.

An official of the Energy Regulatory Commission also said on television that generation rate adjustment mechanism (GRAM) and incremental currency exchange rate adjustment (ICERA) were different and would be heard separately by ERC. The officials said the Napocor petitions on GRAM and ICERA would not necessarily guarantee that the electricity rates would not increase.

NPC president Cyril del Callar said power rates would remain stable since there were adjustment mechanisms that could offset any increase that may be approved by the ERC.

Del Callar said Napocor filed five to six petitions that would basically help maintain rates until 2009 at the June 2008 level of P3.89 per kilowatt-hour (kWh).

“Naglolokohan ba tayo? What is Napocor doing? It is so lazy, it does not take the pains of explaining to the public these petitions. But let the ERC see to it that public interest is guarded,” Senator Arroyo said over radio station dwIZ.

“What is the petition for basic rate increase for? Why does Napocor have to file that petition?” Arroyo asked.

According to Del Callar, the five to six petitions for rate adjustments pending with ERC are a mixed petition that could comprise rate increases or rate reductions.

“But the sum will be not higher than our existing rates now – which are around P4.11 to P4.15/kWh (36 centavos basic rate plus P3.89 per kWh current rate),” he said.

Earlier, Arroyo said Napocor should justify its petition seeking to increase its basic rate.

Arroyo said Napocor, badly rapped for its poor track record, could expect more criticisms from the public already reeling from high costs of food and fuel.

He said Napocor wanted to increase its power rates to cover costs for its slow privatization effort and inefficient management.

Arroyo noted customers of Manila Electric Co. (Meralco), the largest purchaser of electricity from Napocor, would have to bear about 35 percent of the rate adjustment.

Meralco is currently sourcing an average of 35 percent or 14.8 centavos per kWh of its requirement from Napocor. Its customers who consume 200 kWh will pay an additional P30 per kWh a month under the proposed rates, he said.