Noy: Gov't may tap Malampaya funds to cushion Meralco hike

MANILA, Philippines - The government is studying the possibility of using the Malamapaya funds to cushion the impact of high oil price hikes and the impending power rate increase to be implemented by the Manila Electric Co.(Meralco), President Benigno Aquino III said Monday.

In a televised interview with reporters, Aquino said he has instructed Cabinet officials including Energy Sec. Jericho Petilla to review if an how the Malampaya funds can be tapped to mitigate the effects of the price increases.

"I will expect all of these people that I assigned to study it, to give me proposals -hopefully before I leave for Japan- that we can implement at the soonest possible time," Aquino said.

On oil price hikes, Aquino said among the things being looked into is giving subsidy to public transports until February to prevent a subsequent fare increase.

However, the President cannot say whether the subsidy would also apply to the electricity bills of households in Metro Manila and other areas.

Meralco is set to implement a P3.4397 per kilowatt increase in electricity rates for this month and in January 2014, the highest power hike to date in the country.

The power rate increase is due to the month-long maintenance shutdown of the Malampaya gas facility where most of Meralco’s power suppliers source their fuel to produce electricity.

Meralco president Oscar Reyes had said the generation charge would increase to a record P9.107 per kilowatt-hour but the hike would be implemented in two tranches to soften the blow on consumers.

Senator Sergio Osmeña III has suggested using the Malampaya funds, estimated at P130 billion, to subsidize additional generation costs.

"The Malampaya Fund has gotten very fat. It is time that it is used to ease the burden of power consumers," Osmeña said.