PB to ERC: No more increases

Published by rudy Date posted on October 4, 2011

THE Provincial Board (PB) asked the Energy Regulatory Commission (ERC), through the Department of Energy (DOE), not to act on petitions for power rate increase.

These agencies should look for ways to reduce power rates instead, PB Members Thadeo Ouano and Sergio Restauro said in a resolution that was passed in mass motion during the session yesterday.

“Our country is blessed with alternative and renewable sources of energy, which are not only environment-friendly but also generate power at lower costs,” the PB resolution read.

The PB believes a power rate increase would result in demands for increase in the prices of goods, fare and wages.

Investors

On the other hand, bringing down electricity rates would make Cebu more attractive to investors that, in turn, will create more jobs.

The Power Sector Assets and Liabilities Management (Psalm) has a pending petition to increase power rates by 40 centavos per kilowatthour before the ERC.

ERC reviews proposals that would affect end-consumers of electricity, including power rates, charges that are incorporated in power costs, and operations of distribution utilities and power generators.

The PB said power rates can still be brought down.

Competition

The PB also proposed that the DOE—which is headed by Secretary Rene Almendras, younger brother of Vice Gov. Agnes Magpale—implement a program that would improve competition and attract investment in the energy sector.

Last week, five organizations asked President Benigno Aquino III to defer power rate increases.

The groups are the Philippine Chamber of Commerce and Industry, the Philippine Exporters Confederation, Philippine Steelmakers Association, Freedom from Debt Coalition and Trade Union Congress of the Philippines (TUCP) party-list.

The groups said power rate increases eat part of a family’s budget that is usually allotted for food, medicines and education. –Rizel S. Adlawan, Sun Star

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