[ manilastandardtoday.com ] May 3,
2012
Power distributor Manila Electric Co.
said Wednesday large industries operating in economic zones still need subsidies
to mitigate the high power rates, even after the lapse of a discounted rate
program in December.
“This economic sector may require
continuing support,” Meralco chief operating officer Oscar Reyes told reporters
at the sidelines of the host country forum sponsored by the Management
Association of the Philippines during the 45th annual meeting of the Asian
Development Bank in Pasay City.
The ecozone rate program, which
provides subsidized electricity rates to 279 customers that account for $19
billion or 43 percent of manufacturing exports and employ 222,213 individuals,
is set to lapse in December this year.
Reyes said Meralco had started signing
supply contracts with power generating firms in anticipation with the lapse of
its transition supply contract with National Power Corp. in December.
Meralco has signed several contracts
covering over 2,380 megawatts at competitive rates. Reyes said the contracts
will help Meralco “contain the rising power rates.”
He said large industries were expected
to contract their power requirements through bilateral agreements under the
open access and retail competition regime, but it would be hard to match the
rates offered by Napocor.
The government wanted to put in place
open access, which would give large power users the option to choose their own
power supplier by the third quarter.
“There is a concern, whether we will
be able to match or give better ecozone rates without continuing subsidy. What
will be the price of these bilateral contracts,” Reyes said.
Napocor and Meralco began providing a
special rate to accredited industries located inside the ecozones in 2007. The
special rate offered a discount of as much as P1 per kilowatt hour to
industries located within the ecozones under the Meralco franchise area.
Power Sector Assets and Liabilities
Management Corp. agreed to extend the ecozone rate program, under its
transition supply contract with Meralco until December or until three months
after the introduction of open access and retail competition, whichever comes
earlier.
(Published in the Manila Standard
Today newspaper on /2012/May/03)
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