Friday, July 04, 2008 [ manilatimes.net ]
By Euan Paulo C. Añonuevo, Reporter
Power rates in the country’s economic zones are set to go down with the decision of the Manila Electric Co. to resolve its issues with the Philippine Economic Zone Authority (PEZA), the company and the Department of Energy concurred Thursday.
Jesus Francisco, Meralco president, said the board of directors has decided not to pursue the company’s case against the regulator after “our main concerns as a franchised distribution utility were addressed by PEZA.” The issue stemmed from PEZA’s attempt to regulate power rates in the ecozones.
Department of Energy Secretary Angelo Reyes said this decision of Meralco will help reduce power rates in the ecozones and send positive signals to investors.
Earlier, the Regional Trial Court of Pasig had granted the petition filed late last year by Meralco and the Private Electric Power Operators Association Inc. for a temporary restraining order to stop PEZA from implementing discounts in ecozones within the franchise area of Meralco.
Although the Electric Power Industry Reform Act of 2001 gave the Energy Regulatory Commission the sole authority to regulate power rates, a Department of Justice opinion gave PEZA the authority to regulate the electric utilities within its jurisdiction, which eventually led to the filing of the said petition.
Prior to the petition, PEZA issued guidelines for a P1-per-kilowatt-hour cut in ecozones’ power rates, duplicating the initiative of Meralco and state-owned National Power Corp. to implement their own rate cuts in the ecozones.
The discounts on electricity rates were borne out of the clamor from the country’s large businesses, specially those from the local electronics industry, for a reprieve from costly power rates deemed the second highest in the region.
Francisco said Meralco will officially file the petition to withdraw its case against PEZA next week.
Reyes said, “This is a welcome development and will benefit close to 300 locators in 13 ecozones in the country.
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