THE government will no longer provide discounted electricity to economic zones under the franchise area of Manila Electric Co. by December.
“Although we fully understand the possible implications of this decision to the economy, it is no longer reasonable for us to renew the power supply contract with Meralco given the limited supply that PSALM currently has and the high operating costs of generating power from the remaining PSALM-owned plants in Luzon,” Emmanuel Ledesma, Jr., Power Sector Assets and Liabilities Management Corp. president, said.
Earlier, Meralco, the Philippine Economic Zone Authority and members of the Semiconductor and Electronics Industries in the Philippines Inc. asked for the retention of the power rate discount inside economic zones until December 2012.
The discounted rates were brought about by a memorandum of agreement between Meralco and state-owned National Power Corp. in 2007.
The program benefited 279 customers in industrial areas, representing 43 percent of total manufacturing exports valued at about $19 billion. These industries provide more than 222,213 jobs.
Ledesma said PSALM cannot continue with the discounts because Meralco and Napocor’s contract will expire on December 25., or a day prior to the date regulators set for the start of open access in the power sector.
Mandated under the Electric Power Industry Reform Act of 2001, open access will allow qualified consumers to choose their suppliers in lieu of distribution utilities sourcing electricity on their behalf.
The scheme aims to spur competition in the power generation sector, which was once controlled by Napocor. Since the passage of EPIRA, the bulk of the latter’s power plants have been privatized to pay for its debts.
“Upon expiration of the Meralco power supply contract, the customer is free to contract and negotiate with any power producer. As with any power supply contract, the power rate will depend on the contractual agreement between the parties,” Ledesma said.
He said Napocor has ceased to become the sole supplier of electricity to ecozones after majority of the company’s plants were privatized. –Euan Paulo C. Añonuevo Reporter, Manila Times
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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