High power rates threat to ‘Bagong Pilipinas’ goals – group

POWER rates in the Philippines, among the highest in Asia, pose a threat to the economic goals of “Bagong Pilipinas” of President Ferdinand Marcos Jr., a consumer group said on Sunday.

Rodolfo Javellana Jr., president of the United Filipino Consumers and Commuters (UFCC), issued the warning following the 57-centavo per kilowatt hour increase announced by Meralco recently.

Javellana said the high power rates, especially in Meralco service areas accounting for more than 75 percent of the economy, were a major disincentive in efforts to attract more investors, foreign or local.

Meralco said that power rates this month would increase by P0.5738 per kWh, bringing the overall rate to P11.9168 per kWh.

“The ‘Bagong Pilipinas initiatives will not be realized if electricity rates continue to be expensive and costly,” Javellana said. “The foreign investors we are trying to attract will not set up business here due to the prohibited electricity prices [and as] those companies are owned by a few oligarchs.”

The UFCC head said to bring a more investor-friendly business climate, Congress must dismantle laws allowing monopolies in electric utilities and revise the Electric Power Industry Reform Act or EPIRA of 2001 to lower the cost of electricity in the country.

“If that is the law, then we should revise or modify instead of them prioritizing amending the Constitution,” Javellana said.

“If we want the economy to improve, if we want more ‘foreign direct investments,’ then electricity must be made affordable so that there will be a lot of investments going in the country,” he added.

The effects of adjusting power rates to reasonable levels would be felt immediately in terms of more investments, he said.

Javellana said it was also important to look deeper into the practices of power utilities and allegations of monopoly.

The House of Representatives is investigating the issue following a privilege speech by Laguna Rep. Danilo Fernandez who accused Meralco of franchise abuse, which the power company had denied.