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As protests vs. Meralco petition for power rate hike intensify

Arroyo Moves to Evade Political Electrocution

To save itself from being politically electrocuted, the Macapagal-Arroyo government attempted to distance itself from the raging issue of power rate increase by promptly ordering a review of the Manila Electric Co.’s (Meralco) petition for a P3.97/kwh hike after party-list group Bayan Muna exposed the issue to media.

At the same time, President Gloria Macapagal-Arroyo herself has resorted to Red-baiting, branding Bayan Muna Representative and labor leader Crispin Beltran a “communist.”

BY ROWENA CARRANZA
Bulatlat.com

Although Filipino consumers are generally passive and sluggish in responding to issues, the problem of exorbitant power rates has been causing intense protests. Some political groups, including by a pro-Estrada organization, have in fact used it as a mobilizing issue. Even former Senator Juan Ponce Enrile capitalized on the controversial Purchased Power Adjustment (PPA), which accounts for almost 50% of the electric bill, during his bid for reelection last year.

After militant groups exposed to media Meralco’s attempt to increase power rates, reactions from various groups and politicians were immediate, demonstrating the explosive character of the issue.

Sneaky

Meralco attempted to sneak in the P3.97/kpw rate hike by applying for unbundled rates last December. The application was given to the Energy Regulatory Board which started deliberations last March 11.

Meralco used as basis for its application the Electric Power Industry Reform Act (EPIRA) which mandates the unbundling of various charges in the electric bill into its various components.

A P3.97/kwh rate hike means a whopping 116.76% increase from the current basic charge. Residential customers now paying a basic charge of P3.40 per kilowatt-hour would have to shell out P7.37 per kilowatt-hour. Small enterprises in the industrial sector would have to pay an additional P4.07 from the current basic charge of P2/kwh to the proposed P6.07/kwh, or an increase of 203.50%, while medium enterprises would have to pay an additional P4.82/kwh from the current P1.96/kwh to the proposed P6.78/kwh, or an increase of 245.92%.

Government hospitals, which enjoy heavy subsidy under the current billing system, would have to pay an additional P3.69/kwh from the current basic charge of P1.74/kwh to the proposed unbundled rate of P5.42/kwh, for a 211.48% hike.

These computations do not as of yet, include additional automatic charges like the Universal charge and other automatic levies under Republic Act 9163 or the EPIRA, the first major legislation approved under the Gloria Macapagal-Arroyo administration.

On the other hand, the proposed rate hike will allow Meralco an unprecedented P16 billion in “superprofits” for the first year under a Return on Rate Base (RORB) of 15.97%.

Meralco reportedly earned P3.31 billion in 1991 and P2.49 billion in 2000.

Protests

In a press briefing dubbed, “Kukuryentihin ang Mamamayan!” held at the office of the Bagong Alyansang Makabayan (Bayan) in Quezon City last week, the Party-list group joined other organizations and consumer groups in criticizing the “anomalous, immoral and unjustified” power rate hike being proposed by the giant power distributor.

“The effects of the rate hike on the economy would be enormous. Poor and middle-income residents consuming an average of 51 to 300 kilowatts per month would be the most severely affected,” pointed out Mike C. Ac-ac, legislative officer of BAYAN MUNA Party-List Rep. Crispin ‘Ka Bel’ Beltran. He added that these customers, numbering some 2.24 million in Metro Manila and Meralco franchise areas in Central Luzon and Southern Tagalog, comprise 68.33% of all Meralco consumers.

Citing a sample family size of five consuming an average of 117 kilowatts a month for an electric bill worth P672.00 under the current system, Bayan Muna projected the bill to increase to P862.14 with the proposed unbundled rates. The electric bill is expected to increase further with the universal charge and other charges under EPIRA, the amounts of which have yet to be determined by the ERC.

Domino effect

Since power affects virtually all industries, any power rate increase would effect an increase on many basic commodities and services.

Bayan Muna projects an average increase of P0.66 in the prices of basic goods and services as an effect of the P3.97/kwh rate hike. The price of electricity-intensive manufactured goods like basic chemicals would go up to as high as P2.25, textiles by P2.65 and basic metals by P1.19.

Agricultural products would go up by an average of P0.79, air transport by P0.79, recreational and personal services by P0.66 and real estate by P0.79.

Public hearing

The three party-list representatives under Bayan Muna are reportedly planning to ask ERC chair Fe Barin to hold public hearings on Meralco’s application for unbundled rates in easily-accessible places like Plaza Miranda in Quiapo, Luneta in Manila or the Quezon Memorial Circle. This is to allow ordinary consumers to voice out their opinion on a matter that would directly affect them.

The hearings are currently being conducted in the plush Pacific Center Building in San Miguel Avenue in Ortigas Center, where the ERC office is located. Bulatlat.com

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