DoE not keen on Meralco takeover
Thursday, January 19, 2006
The Department of Energy yesterday said the government is not considering a takeover of the Manila Electric Co. (Meralco), the country’s biggest power distributor.
Energy Secretary Raphael Lotilla said the national government through DoE is focusing its attention on the advance of international oil prices to their highest level in the last three and a half months and to mitigate their impact on domestic fuel and electricity prices.
“This includes all measures that can ensure affordable electricity rates for all consumers including those in the Meralco franchise area,” Lotilla said in a statement.
Lotilla noted that the current crisis involving Iran’s nuclear program is of real concern to the Philippines as Iran supplies 24.6 percent of the country’s crude importation, second only to Saudi Arabia at 56.3 percent.
“We continue to pursue the principle of securing a fair deal for electricity consumers and for the government, and advancing transparency and competition in the electricity industry,” he stressed.
The crisis in Iran has affected world oil prices. The Philippines is still vulnerable to high oil prices as many power plants in the country is still oil-based.
At the same time, domestic pump prices were affected. Oil firms raised prices by 50 centavos per liter for all petroleum products and 50 centavos per kg for liquefied petroleum gas (LPG).
Dubai crude, the benchmark used by oil refiners like Shell and Petron, increased by $3.66 to $56.86 per barrel in January from $53.20 in December. As of Jan. 12, it reached $57.83 per barrel.
Unleaded gasoline imported from the region likewise went up by $5.83 per barrel to $66.64 in January from $61.01 in December. As of Jan. 12, unleaded gasoline was pegged at $64.76 per barrel.
Diesel imported from the region also showed an increase of $4.96 per barrel to $71.99 this month from $67.03 in December. As of Jan. 12, diesel reached $71.17 per barrel.
Meanwhile, the contract price for LPG also showed an increase of $44 per metric ton to $582 per metric ton in January from $538 per metric ton in December.
DoE said it likewise focused on working with all stakeholders to give Meralco’s customers sufficient power and affordable rates. Meralco, for its part, disclosed to the Philippine Stock Exchange that it is “not aware of any such takeover plan.”
Critics of Meralco have been pushing for a government takeover in the hopes of lowering electricity rates in the country. The Philippines remains third-highest among countries with high electricity rates in Asia, next to Cambodia and Japan. Alena Mae S. Flores
posted by philpower @ 9:13 AM,
