Bacolod solon pushes inquiry on NPC rate hike
BACOLOD CITY -- Lone District Representative Monico O. Puentevella recently introduced House Resolution 1074 directing the House Committee on Energy to conduct an inquiry into the Energy Regulatory Commission's (ERC) decision to provisionally approve the application of the National Power Corporation (NPC) and the Power Sector Assets and Liabilities Management Corporation (Psalm) for new basic power generation charges for Luzon, Visayas and Mindanao.
Puentevella said that as vice-chairman of the Committee on Communication and Energy, it is appropriate to conduct a congressional inquiry because the power rate hike was concluded without a public hearing and the decision was impractical and unjust in the face of the crisis that the whole world is experiencing.
"The decision is ill-timed as NPC's consumers, specifically the electric cooperatives serving the electricity needs of the whole country will in turn pass it on to its clients, the million of Filipinos already swamped with burgeoning expenses in light of the financial crisis and higher cost of living,” Puentevella said.
Last February 16, 2009, the ERC provisionally approved the application of NPC and Psalm for new basic generation charges for Luzon, Visayas and Mindanao thru its order in resolution of ERC Case No. 2009-004 RC, effectively raising electricity rates in all areas starting the March 2009 billing period.
Puentevella noted that the new basic generation rates that NPC will pass on to its consumers is actually a price hike as the rates will increase by 46 centavos per kilowatt hour (kWh) for Luzon, P0.83 per kWh for the Visayas and 71 centavos per kWh for Mindanao. He also cited that the ERC, in its decision, said that the provisional relief granted to NPC and its co-applicant Psalm "is intended to immediately alleviate NPC's current financial difficulties given its cost of generating power" and the discounts it is mandated to extend a certain customer.
Puentevella noted that while the relief is given to NPC by the ERC to alleviate its financial difficulties and to make it more viable for privatization as rationalized in the EPIRA law, yet the burden is placed on the Filipino people to dig NPC out of the mess that it has created for itself.
"An effort must be made to stop if not stagger the implementation of this rate hike, provisional approval or otherwise," Puentevella added.