GMA freezes power rates

President Arroyo ordered state-owned National Power Corp. (Napocor) yesterday to suspend the controversial purchased power adjustment (PPA), which imposes an additional charge on electricity consumers.

The President admitted, however, that the suspension of the PPA, which effectively freezes power rates, would mean losses of some P400 million a month for debt-strapped Napocor.

"Napocor’s losses will have to be assumed by the national government or the taxpayers themselves if Congress does not pass the Omnibus Power Sector Reform bill," the President said during her visit to Roxas City in Capiz yesterday.

The PPA is collected by electric cooperatives nationwide from consumers as a mechanism to recover adjustments in fuel costs, foreign exchange, systems losses from Napocor lines and other charges by the state power firm.

Mrs. Arroyo said the suspension of the PPA was approved during the weekly Cabinet meeting at Malacañang Tuesday.

"One of the items in our meeting was the PPA. My instructions are for Napocor to temporarily suspend the PPA," she said.

In Bacolod City, consumer agitation over the PPA was recently heightened when charges increased by almost 100 percent of their total monthly billing.

The Church-led Negros Consumers Watch Council staged protests Monday, which included daily one-hour power shutoffs.

Council chairman Fr. Greg Patiño said yesterday they will continue with their protests despite the latest directive of Mrs. Arroyo.

"It is only a suspension. It does not totally relieve the consumers of additional burden," he said.

In seeking the PPA, Napocor had cited the need to meet maturing foreign and domestic obligations. The assumption of Napocor’s liabilities is among the contentious issues delaying the passage of an Omnibus Power Sector reform law. – Marichu Villanueva, Antonieta Lopez