📷: Bayan Muna | FB
Former Bayan Muna Congressman and longtime consumer rights advocate Carlos Isagani Zarate strongly criticized the latest power rate hike announced by Meralco, calling it an added burden on consumers amid the scorching summer heat and worsening economic hardship.
“This is yet another heavy cross for consumers to bear. Dagdag kalbaryo na naman ito sa mga consumers, lalo pa sa panahon ng tag-init kung kailan mas mataas ang konsumo ng kuryente at mas hirap ang mga manggagawa’t maralita,” Zarate said in reaction to Meralco’s announcement of a P0.7226 per kilowatt-hour (kWh) increase in power rates for April consumption.
The rate adjustment pushes the overall electricity rate to P13.0127/kWh, meaning households consuming 200kWh will see a P145 increase in their monthly bills.
Zarate pointed to the flawed structure of the power industry under the Electric Power Industry Reform Act (EPIRA) as the root cause of the recurring rate hikes and called for its urgent repeal.
“This is the bitter fruit of over two decades of EPIRA. It has transformed power generation and distribution into a business for profit, not a public service. Unless EPIRA is scrapped, consumers will continue to suffer from these unjust and arbitrary price hikes,”Zarate said.
He also renewed his call for the removal of the 12% Value-Added Tax (VAT) on electricity, which he described as “double burden” on already overburdened consumers.
“Electricity is a basic necessity, not a luxury. Taxing it with VAT is anti-poor and anti-consumer. Ang VAT sa kuryente ay dagdag pahirap sa mga pamilya, lalo na sa mga minimum wage earners at mga nasa laylayan,” Zarate added.
The former lawmaker also raised alarm over Meralco’s increasing reliance on the Wholesale Electricity Spot Market (WESM), whose volatile and speculative prices were cited as a major reason for the surge in generation charges. WESM prices reportedly jumped by P3.4205/kWh due to tight supply conditions and higher demand.
“The use of WESM should be a last resort, not a regular source. Its role must be minimized to a maximum of 5% of the power mix. Otherwise, we are exposing consumers to the greed of energy traders and market manipulators,” Zarate stressed.
Based on Meralco’s own data, 23% of its power supply in the latest period came from WESM, a significant portion compared to its Independent Power Producers (33%) and Power Supply Agreements (44%).
Zarate called on Congress to investigate the pricing behavior in WESM, re-examine the deregulated structure of the power industry, and pass pro-consumer reforms such as a People’s Power Bill that will restore public control and accountability in the energy sector.
“Electricity is an essential right. We need a power system that serves the people, not the profit motives of a few oligarchs and foreign corporations. Patuloy ang laban para sa abot-kayang kuryente para sa lahat,” he concluded. #
