QUEZON CITY—The national center of the country’s 1.4 million government employees, the Confederation for Unity, Recognition and Advancement of Government Employees (COURAGE) today denounced the impending power rate hike as an added burden to workers and employees already reeling from unabated hikes in transportation, food and oil price hikes.
The group issued a statement after the Energy Regulatory Commission (ERC) allowed the National Power Corporation (Napocor) to collect P4.15 billion from consumers’ electricity bills starting this August, which will redound to an increase of around P0.07 per kilowatt-hour in electricity rates for one year.
According to COURAGE National President Ferdinand Gaite, the electricity rate hike showcases the detrimental effects of privatization.
“The passage and subsequent implementation of the 2001 Electric Power Industry Reform Act (EPIRA) amidst public outrage for its repeal is a glaring example of the devastating effects of privatization on the prices of commodities and services. Research has shown that in over 10 years, power rates have more than doubled. Meralco rates for residential users have risen by 112.5 percent, from P4.87 per kilowatt hour in 2000 to P10.35 in 2010. Those of the Napocor went up by 86 percent in the same period, from P2.39 to P4.45 per kwh. Despite the government’s assurances that the implementation of EPIRA will reduce the debts incurred by the National Power Corporation (Napocor); as of 2010, Napocor still had outstanding debts amounting to $15.8B (P713.64B), an obligation that is passed on to consumers who shoulder higher power rates. And now, the Power Sector Assets and Liabilities Management Corp. (PSALM) has requested the ERC to allow it to charge consumers P0.03 per kilowatt-hour over 15 years for the stranded debt; and P0.36 per kilowatt-hour for the stranded contract costs that will be left with Napocor’s books. Nakakagalit na tahasang ipinapasa sa mamamayan ang obligasyong magbayad ng mga utang ng Napocor na dulot naman ng mga sweetheart deals, mga kasunduang di-patas na ipinatupad noon pang panahon ni Ramos,” Gaite said.
Gaite also challenged the Aquino administration to intervene and halt the impending power rate hikes which will encumber workers and employees that are already living on the edge of poverty.
“Nowadays, workers and employees are already struggling to survive with paltry wages and almost non-existent benefits. A power rate hike will undoubtedly be an added burden which will further the immiseration of the labor force. As it is, the Aquino administration is either inept in controlling these price increases or is in cahoots with those who will benefit from these such as the private businesses” Gaite declared. ###