Kuryente.org slams MERALCO power rate increase, unjust automatic pass-through

Wazzup Pilipinas!?




Kuryente.org slams the recent announcement of MERALCO to increase by .44/kwh in the billing for October. This increase will result in an P84.00 increase for consumers with 200Kwh of electricity consumption per month. The announced increase is double in amount compared to the recent average minimum wage increase of P40.00.

Roland Vibal, National Coordinator for Kuryente.org, said:

“MERALCO’s basis for this abrupt increase is unacceptable and unjust for residential electricity consumers. The increase due to high generation cost as supply of local natural gas is insufficient and the continued high price of imported alternatives is a knee-jerk reaction and not a valid excuse. MERALCO must stop acting as a spokesperson for the generation company.

“The true cause of the increase is the automatic pass-through provisions that the government allows to continue despite calls for its prohibition. This mechanism justifies both power producers and distribution utilities like MERALCO to abruptly pass on to consumers any changes in price to preserve their profit margins.

“Kuryente.org calls for the scrapping of automatic pass-through provision and the Energy Regulatory Commission must review all MERALCO Power Supply Agreements and immediately stop it. Likewise, the review and amendment of the EPIRA should repeal and scrap any section of the law that allows this mechanism of automatic passing of increase in cost to consumers.”