Press Release
September 14, 2021

Hontiveros urges ERC, power companies anew to suspend power rate hike

Senator Risa Hontiveros today renewed her call to suspend any new power rate hike in the country until the Senate Committee on Energy finishes its investigation of rotational blackouts which affected many households in May and June.

The senator's statement comes as Meralco announces that it will impose a new, higher power rate for the month of September supposedly due to a higher generation charge, even as the inflation rate in the country jumped to 4.9 percent in August amid the soaring prices of goods.

According to Hontiveros, the Energy Regulatory Commission (ERC) should disallow any such power rate hike at least until the Senate wraps up its ongoing probe on what caused the recent rotational blackouts, which reportedly led to at least 705,000 homes losing power and economic losses of around P116 million.

"It is a matter of fairness and compassion. If this rate hike in September is allowed, it would mean that power rates have increased for six straight months now. Maawa naman tayo sa mga pamilyang hindi na alam kung paano makaka-sabay sa walang tigil na pagtaas ng presyo ng pagkain at ibang pangunahing bilihin," Hontiveros said.

She added that due consideration should be given to consumers, especially since neither government agencies like the ERC nor power firms have yet provided the public with explanations or compensation in relation to the power blackouts in previous months.

"Tama lang na hintayin muna ng mga kompanya gaya ng Meralco ang resulta ng imbestigasyon ng Senado ukol sa sanhi ng malawakang blackout nitong mga nakalipas na buwan. At kung mapatunayan na may mga kompanya o indibidwal na nagkulang o may kasalanan, sila ang dapat managot dito sa mga dagdag singilin, hindi ang mga konsumer," the senator said.

Hontiveros has been active in efforts to lower the price of electricity being paid by consumers during the pandemic. Due to her calls, Meralco committed to implement a "relaxed policy" for disconnecting consumers who are unable to pay their bills, especially during the enhanced community quarantine.

Recently, Hontiveros has also pushed for the recomputation of the weighted average cost of capital (WACC), in order to bring down monthly power costs. In response, the ERC has said that they are now reviewing the WACC and affirmed that lower power rates are "feasible."

"Malaking ginhawa ang maibibigay natin sa mga konsumer kung mababawasan ang kanilang bayarin sa kuryente kada buwan. Kung makakatipid ang konsumer sa kuryente, mas lalaki ang kanilang budget para sa pagkain at gamot. Ngayong may pandemiya, bawat piso na matitipid ng mga kababayan natin ay mahalaga," Hontiveros concluded.

News Latest News Feed