NegOcc mulls CA petition vs NPC power rate hike
BACOLOD CITY -- Atty. Joemax Ortiz, who represented the province of Negros Occidental as intervenor in the just concluded hearing on the provisional rate increase of National Power Corporation (NPC) in Cebu City, said they will file a petition for prohibition before the Court of Appeals to prevent the implementation of the P1.14 per kwh power rate increase.
Ortiz along with Mr. Romeo Lavilla were designated by Governor Isidro Zayco to attend the hearing and present the opposition for the provisional power rate increase at the Energy Regulatory Commission (ERC) in Cebu.
Atty. Ortiz said the hearing was well represented by different sectors such as the Local Government Unit of Bacolod City represented by Atty. Vicente Petierre Jr. and City Administrator Dr. Roger Balo and representatives from Negros Occidental Electric Cooperative and the Metro Bacolod Chamber of Commerce and Industry (MBCCI).
Atty. Ortiz said that the hearing resulted in a lively discussion because it seems that the ERC did not anticipate that there were a lot of sectors that registered their opposition to the power rate hike. He also confirmed that as intervenor they were given the chance by the ERC to cross examine the representative of Power Sector Assets and Liabilities Management Corporation (PSALM) and also the representative of the NPC.
He also said that there is no basis to impose the provisional rate hike because 60 percent of the generating assets of NPC was subjected to privatization. "Now that only 40 percent of the generating assets are administered by PSALM and NAPOCOR, why they have asked for such increase?" Ortiz asked.
Ortiz also said that it was revealed during the hearing that the financial condition of NPC is not good and therefore they seek for the provisional power rate hike. Ortiz argued that if its financial condition is not good, then there is inefficiency and mismanagement on the part of the NPC and they have no right to pass this burden to the consumers.
ERC scheduled the next hearing on April 21, 2009. Atty. Ortiz was dismayed because while the ERC still hears some points and arguments, the P1.14 per kwh power rate hike is already in effect.
He had no assurance from the ERC that the provisional rate hike will be set aside and therefore believes that this increase will be shouldered by the consumers from 3 to 4 months while this matter is subject for deliberation.