MANILA, Philippines — Opposition Sen. Risa Hontiveros criticized the power rate reduction announced by the Manila Electric Company (Meralco) on Tuesday, emphasizing that the national government should implement critical policy changes to further reduce power costs.
“The decrease in electricity charges will naturally occur because the price of imported coal has also dropped in the world market. So the question is, how long will consumers enjoy the lower electricity charges? It’s not permanent,” Hontiveros said in a statement.
This statement follows Meralco’s announcement of a P0.72 per kilowatt-hour decrease in rates for July due to diminished electricity demand during the rainy season and lower generation charges.
Hontiveros said that to maintain these low power costs, the national government should “proactively implement policy changes.”
“One reform that I’ve long been advocating to the Energy Regulatory Commission (ERC) is the reduction of the excessively high 15 percent weighted average cost of capital (WACC),” Hontiveros said.
“Meralco and the National Grid Corporation of the Philippines (NGCP) have been benefiting from this since 2015. If it’s corrected, there will certainly be a decrease in distribution and transmission charges, easing the burden on consumers,” she said.
Hontiveros also pointed to fraudulent contracts, power shortages and delayed transmission projects that directly affect consumers. She said the ERC, along with the Department of Energy, should correct and monitor power supply agreements between generation companies and distribution utilities.
The lawmaker also stressed that the proposed imposition of a value-added tax on “already expensive” power rates will further burden families across the archipelago.
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