SENATE President Juan Miguel Zubiri last Monday, August 8, 2022, took to the floor to deliver a privilege speech where he raised the alarm on the steep rise of electricity rates in Mindanao and other parts of the country.
He also suggested the review and amendment of the ‘Electric Power Industry Reform Act of 2001’ (EPIRA) or RA 9136, which was also among the call to Congress made by President Ferdinand Marcos Jr., during his State of the Nation Address (SONA) last July 25, 2022.
Zubiri, who hails from Northern Mindanao, relayed to the chamber how he has been receiving complaints from his fellow Mindanaoans regarding rising electricity rates in the region.
“The electricity rate in Cagayan de Oro has increased tremendously from 10.62 pesos per kilowatt hour in January of this year, to 14.18 pesos in July for commercial consumers,” Zubiri bared. “That is an increase of 33.52 percent.”
“In Bukidnon, a residential consumer paid 15.15 pesos per kilowatt hour in June, and in July, he paid 16.56 per kilowatt hour. A 9.31 percent increase in just a one-month period,” he added.
Zubiri also presented July 2022 residential power rates from electric cooperatives in Mindanao and parts of Visayas, with the lowest being LEYECO 2 at 13.03 kilowatt per hour, and the highest being SOLECO at 19.01 kilowatt per hour.
“Admittedly, tumaas naman ang krudo sa international market as well as the weakening of the peso against the US dollar and other foreign currencies,” he recognized, acknowledging the reason for rising prices.
However, noting that EPIRA allows for the burden of rising production costs to be passed onto consumers, Zubiri called for a review of the law.
“It has been twenty-one years since we passed the EPIRA. If we need to review and amend it to respond to the condition of the times, we are prepared to do so. It is now ripe for review.
“No less than the President, in his State of the Nation Address, has called for its review and amendment,” Zubiri noted.
He also questioned whether the price increases were approved by the Energy Regulatory Commission (ERC), and whether power companies were being audited properly.
“Assuming that these rates were approved by ERC, who audits these generating companies to make sure that they are declaring the right rate increase?” he asked.
“For instance, a coal power plant in Northern Mindanao is charging incremental currency exchange rate adjustment and passing it on to the consumers. However, a sister company operates a coal mine in the country. How can we be sure that the coal they are using is imported and not coming from the coal mine here in the country?”
Apart from a review of EPIRA, Zubiri also called for the operation of the Wholesale Electricity Spot Market (WESM) in Mindanao, to help lessen the impact of price increases by giving distribution utilities options to buy electricity from cheaper sources.
“A hydro power plant in Northern Mindanao is selling electricity for 6.00 pesos per kilowatt hour, much lower than the 10.26 pesos that CEPALCO buys from,” he emphasized. A longtime champion of renewable energy, Zubiri again advocated for a switch to renewable sources, which are not only cleaner, but also cheaper.
“Kailangan pong maging mas makatao at patas ang presyuhan ng kuryente para mas matulungan nating makabangon ang ating mga kababayan,” the Senate leader added.