Government eyes electricity subsidy for low-income consumers
Manila Times
In a bid to moderate the impact of high energy prices in the country, the government plans to subsidize power costs of low-income consumers and industries.
Energy Secretary Angelo Reyes told participants to the Philippine Economic Briefing on Friday that the government will subsidize power costs of low-income consumers.
“We will ensure preferential treatment for poor households and power-intensive industries in the distribution of Transco [National Transmission Corp.] charges by Meralco [Manila Electric Co.],” Reyes said.
Socioeconomic Planning Secretary Augusto Santos agreed, saying power is the major input to the country’s export industries, particularly electronics.
“Lower electricity rates will help industries to cut their expenses,” Santos added. Electricity accounts for nearly 50 percent of total operating costs for some firms.
President Gloria Arroyo earlier expressed concern about electricity prices that consumers and industrial users pay for, and promised to bring power costs to be what is the average for Southeast Asia.
“We are eager to move along the privatization of Napocor [National Power Corp.]. Not only will it enable open access, it will also free the government of its subsidy and allow us to use the windfall proceeds to subsidize power costs,” President Arroyo said.
Privatization process under review
Reyes said the government is reviewing the privatization process of power generation assets to fast-track the sale and immediate implementation of open access and retail competition.
He added that for this year, the government plans to privatize 11 power plants operated by state-owned Napocor.
The plants that have been lined up for privatization are the decommissioned Bataan Thermal Power Plant in Limay, for April; Tiwi Geothermal Power Plant in Albay and MakBan Geothermal Power Plant in Laguna, for May; and the Amlan Hydroelectric Power Plant in Negros Oriental, for June.
Also on the list are the Limay Combined-Cycle Power Plant in Bataan, Palinpinon Geothermal Power Plant in Negros Oriental, and Panay Diesel Power Plant in Iloilo, for July; Leyte Geothermal Power Plant in Tongonan and Bohol Diesel Power Plant in Tagbilaran City, for August; BacMan Geothermal Power Plant in Sorsogon, and Iligan Diesel 1 and 2 in Dalipuga, for September; Subic-Zambales Diesel 2 in Olongapo City, for November; and the Aplaya Diesel Power Plant in Misamis Oriental, GenSan Diesel Power Plant in South Cotabato and Navotas 1 and 2 Diesel, for December.
Reyes said to help further lower the cost of electricity in the country, the government needs priority bills such as those on renewable energy, energy conservation, natural gas, liquefied petroleum gas and the Transco Franchise bill.
– Darwin G. Amojelar
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