House urged to solve power rate problem

CEBU, Philippines - Representative Benhur Salimbangon is urging the House Committee on Energy to look into the spiraling cost of electricity in the country and to recommend immediate remedial measures that would ease the burden of the power-consuming public.

In a study conducted last October 2011 by the International Energy Consultants, an independent think-tank, it was found out the Philippines has the most expensive electricity rate in Asia.

“This new “record” of sorts is not something that this proud nation of ours can take pride of as it not only burdens heavily the power consuming public but likewise stands as the biggest reason why foreign investors have been avoiding doing business in the country and are locating, instead, in our Southeast Asian neighbors while threatening as well the competitiveness of Philippine industries in international trade,” Salimbangon’s resolution reads.

The resolution is also urging for an amendment to the Electric Power Industry Reform Act, the abolition or reduction of the various taxes or charges imposed on electricity, the simplification of the pricing of electricity.

It also urged the extension of loans by the National Electrification Authority to electric cooperatives for upgrading purposes in order to comply with prescribed standards at concessional rates and for 10 years. It also enjoined NAPOCOR to immediately solve the problem of power plants that need repair, especially those located in islands, in order to finally be done with the perennial brownouts and the additional costs therein as a result of the repairs.

It further urged the prohibition on passing on to power consumers the burden of shouldering the stranded debts and contract costs of the NAPOCOR through an increased universal charge as it would cause an unimaginable increase in the price of electricity for a long period of time.

As well as  the disallowance of the open access being offered to big businesses and the denial of any attempt to allow them to join the ranks of electric cooperatives as it will only further impoverish the consumers and only enrich the big companies.

Salimbangon said that even as the intent of Republic Act No. 9136 or EPIRA was to lower the cost of electricity, the opposite was what happened and the prices soared unabatedly since its enactment.

He added that  the ever changing monthly pricing by the Independent Power Plants and Wholesale Electricity Spot Market  brought about by the so-called “automatic adjustment formula on fuel cost and forex” is nebulous, if not alien to the power consuming public and, therefore, requires a simplified pricing that can be easily comprehended by them. — (FREEMAN)