Power firms urged to explain rate hike in April
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 06:21:00 04/25/2008
MANILA, Philippines—EmPOWER Consumers, a recently formed electricity consumers group, is calling on the Energy Regulatory Commission (ERC) to compel all power industry stakeholders to explain why electricity prices suddenly spiked this month.
In a letter to the ERC, the group, together with the group Freedom from Debt Coalition and the National Association of Electricity Consumers, said the regulatory body should convene a meeting of major industry players, such as power retailer Manila Electric Co. (Meralco), government-owned producer National Power Corp., state-owned National Transmission Corp., power bourse operator Philippine Electricity Market Corp. and the privatization agency Power Sector Assets and Liabilities Management Corp.
EmPOWER Consumers convener Milo Tanchuling said the sudden rise in Meralco rates was contrary to the ERC’s assurance that rates would remain steady.
Meralco customers this month will see their April bills go up by P0.6717 per kilowatt-hour (kWh). Factoring in all rate adjustments for April, Meralco residential customers consuming 200 kWh a month will see their bills increase by 8.95 percent or by P149.
According to data from Philippine Electricity Market Corp. (PEMC), which operates the wholesale electricity spot market (WESM), the average market price at the electricity bourse for the period from Feb. 26 to March 25 was only P6.72 per kWh—lower than the price at which Meralco bought electricity from WESM.
Meralco’s spot purchases of electricity averaged P8.94 per kWh, PEMC data showed, as the utility bought most of its Wesm-sourced power during peak hours, when prices were high.
“It’s really [Meralco’s] call on when to buy and at what price,” PEMC president Lasse Holopainen said. “We’re just the market. We don’t dictate how [WESM participants] make their ... decisions.” With editing by INQUIRER.net
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