Epira, the culprit behind high power rates
Failed promises of the Electric Power Industry Reform Act of 2001
Time and again the government has been promising that the
privatization of government-controlled corporations and agencies would
result in better services, lower rates and fees for the Filipino people
while bringing in much-needed funds to the government. These
privatization efforts have taken many forms: outright sale of government
assets, contracting out functions of government agencies such as the
purchase and importation of rice, Build-Operate-Transfer schemes, and
the much touted Public-Private-Partnerships of the current Aquino
government.
But the Filipino people’s experience with the power industry proved otherwise.
By ANNE MARXZE D. UMIL
Bulatlat.com
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The big three in the power industry
MANILA – Power rates are expected to increase again this month.
Meralco, the biggest power distributor in the country, said it will
increase its generation charge by 0.085 centavos per kilowatt-hour to
5.3721 per kWh.
A household consuming 100 kWh can expect an increase of P8.50 per kWh
in their electricity bills while those that use 200 kWh a month will
have to pay P17 more for August. Households that use up 300 kWh monthly
can also expect an increase by as much as P25.50 per kWh.
The never ending increases in power rates are blamed on privatization, according to a study POWER FAILURE: 10 years of EPIRA, A people’s review on the impact of the Electric Power Industry Reform Act of 2001,
which was conducted by Bagong Alayansang Makabayan (Bayan), People
Opposed to Warrantless Electricity Rates (Power) and independent think
tank group Ibon.
According to Bayan, the Electric Power Industry Reform Act (Epira)
systematized and widened privatization and deregulation of the power
industry in the country. Epira has paved the way for private
corporations to control the transmission, generation and distribution of
electricity. Corporations that control some of the distribution
utilities also own generating plants.
Rates doubled under Epira
Despite strong opposition from various sectors, Epira was railroaded
by Malacañang’s allies in the House of Representatives and signed by
then president Gloria Macapagal-Arroyo on June 8, 2001,
Epira, according to the Department of Energy
aims to “bring down electricity rates and to improve the delivery of
power supply to end-users by encouraging greater competition and
efficiency in the electricity industry.” In its website, the DOE claimed
that the Epira will make sure that the country will have reliable and
competitively priced electricity. “The strategy is to put an end to
monopolies that breed inefficiency, encourage the entry of many more
industry players, and generate competition that will benefit consumers
in terms of better rates and services.”
Ten years after, however, Bayan, Power and Ibon said Epira’s implementation is ten years of burden to consumers.... MORE
Source: Bulatlat.com
URL: http://bulatlat.com/main/2011/09/08/epira-the-culprit-behind-high-power-rates/
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