Villar cites need to probe all groups in power sector

MANILA, Philippines – Senate President Manuel Villar Jr. has asked Congress to look into the possible overpricing of power by local distribution firms.

Villar said the Joint Congressional Power Commission (JCPC) should be made to investigate possible overpricing by power distribution companies that result in the country having the highest power rates in Asia.

“Due to the rising prices of basic commodities, and to erase doubt that Congress is merely pinning blame on just one company, there is a need to widen the scope of the investigation to include the entire power sector,” he said.

Villar did not elaborate but his statements came after the Energy Regulatory Commission (ERC) ordered the state-run National Power Corp. (Napocor) to explain alleged overcharging from July 2006 to March 2008.

The ERC told Napocor “to explain its failure to file its applications under the Generation Rate Adjustment Mechanism (GRAM) and the Incremental Currency Exchange Rate Adjustment (ICERA).”

Based on ERC’s estimates, the over-recovery amounted to P10 billion, which entitles customers to a refund of 20 centavos per kilowatt-hour under the so-called deferred accounting adjustment (DAA).

The Lopez-family owned power distribution firm Meralco said they were forced to implement higher electricity rates due to Napocor’s alleged overcharging.

Reacting to claims that its power rates are high because they buy power during peak hours, Meralco said they buy power only if there is a high demand for electricity from consumers.

Villar, on the other hand, pointed out that a government takeover of Meralco will not assure that the power rates will go down.

“That is not a guarantee at all. But Meralco should explain why they are being accused of imposing high rates. However, all agencies in the power sector (should be investigated) to avoid speculation that Meralco is being singled out,” Villar told dwIZ radio.  – With Marvin Sy and Delon Porcalla