Palace seeks to soften power price hike blow to consumers

MANILA, Philippines – The government will do what it can to protect consumers from the inevitable P3.4397 per kilowatt-hour (kWh) increase in Manila Electric Company’s (Meralco) power rates. (READ: ERC to deliberate on Meralco hike rate)

This was the promise made by Presidential Communications Operations Office Secretary Herminio “Sonny” Coloma Jr during a dzRB interview on Saturday, December 7.

“Although we are operating in a market-driven and deregulated environment, power firms have the responsibility to make decisions that will be just and beneficial to the citizens,” he said in a mix of English and Filipino.

“The goverment will use its power to protect the welfare of the citizens.”

But President Benigno Aquino III did not give any specific directives on how this will be achieved, said Coloma. The general instruction is to inform power firms that Malacañang Palace is determined to ensure the welfare of the consumers.

Energy officials said they wanted to implement the price increase in at least 3 phases to soften its blow on consumers.

The price hike is due to the month-long maintenance shutdown of the Malampaya gas facility, a major source of fuel to produce electricity for Meralco power suppliers. The shutdown of major powerplants in Luzon aggravated the situation. Thus, power suppliers are forced to buy more expensive diesel fuel to produce power.

The price hike increased the generation charge to a record P9.107 per kilowatt-hour. To serve as a buffer for consumers, the price hike will be implemented in two tranches, said Meralco president Oscar Reyes.

He also assured consumers that the price increase is temporary and that rates will normalize by February 2014.

Energy Secretary Carlos Jericho Petilla agreed there is a need to stagger the price hike but the measure will have to be approved by the Energy Regulatory Commission. – Rappler.com