Electronic firms eye affordable power
Saturday, July 01, 2006
Filipino electronics and semiconductor companies anticipate lower production costs once the Energy Regulatory Commission gives Manila Electric Co. the authority to allow time-of-use (TOU) rates for its big industrial and commercial clients.
Ernie Santiago, president of the Semiconductor and Electronics Industry of the Philippines Inc. (SEIPI), said the TOU rates introduced by the National Power Corp. would lower electricity costs, which make up a substantial portion of their total production costs.
“The choice whether to give Meralco clients the freedom to avail themselves of the TOU rates is up to the ERC. It will have the end-result of making production costs lower,” Santiago said.
Santiago said that lower power rates will boost the productivity of the exports industry.
This year, SEIPI expects exports to grow by as much as 10 percent. Last year, the Philippines total electronics and semiconductor exports reached $30 billion.
Santiago said a number of SEIPI members are set to connect with Napocor once the customer choice program of Meralco gets ERC’s endorsement.
A check with the ERC, however, showed that Meralco has not asked the regulator’s approval for its customer choice scheme. It also has a pending petition before ERC to offer TOU rates to its customers. The TOU rates carry a blended rate of power ordered from Napocor and its independent power producers (IPPs), such as its sister company First Gas Philippines Corp. and Quezon Power Philippines Ltd. They are different from the rates that Meralco will apply in its customer choice scheme.
Early this year, Meralco said it will allow big industrial and commercial clients, or those consuming at least one megawatt (MW) per month, to opt for Napocor’s TOU rates. Those who choose the TOU rates, however, will be required to pay the wheeling rates for the use of Meralco’s distribution facilities.
Meralco, on the other hand, will retain its regulated monopoly of the captive market. It controls the biggest franchise area, making it the biggest distribution utility in the Philippines.
Meralco’s franchise area covers about 25 cities and 88 municipalities, which represent 4.2 million customers.--Niel V. Mugas
posted by philpower @ 11:16 AM,
