Jeff
06-11-2008, 02:32 PM
Manila Standard Today
June 11, 2008
By Roy Pelovello
MALACAÑANG yesterday said customers of the Manila Electric Co. would probably see a cut of 64 centavos per kilowatt hour in their bills this year thanks to measures to bring down power rates.
Finance Secretary Margarito Teves told newsmen the economic team had proposed several such measures, which President Arroyo and the Cabinet eventually approved.
“The President is supportive of these measures. That is why she sent us to convey to you what happened during our Cabinet meeting,” Teves said.
He said the measures would lower the cost of electricity within the year.
Most of the savings would come from Meralco’s agreement to buy power from the state-run National Power Corp. at a flat rate of P4.11 per kilowatt hour, as long as the government absorbs the cost that Meralco’s other suppliers incur as a result of the deal, estimated at P1.2 billion a year.
“This is something we have to negotiate with them but I think they are agreeable to it. This will reduce rates by 58 centavos per kilowatt hour,” Teves said.
He said the government could afford the extra cost.
“This is a comparatively small amount, and this is a good deal for the government because it will result in a big cut in the bills of the consumers. Besides, a lower power rate will be good for business, and we can get back the amount through the taxes,” Teves said.
He said the government was also asking power distributors such as Meralco to absorb the value-added tax on system losses, a move that would cut the cost of electricity by 7 centavos per kilowatt hour.
The government also wants to lower the amount of system losses that distributors such as Meralco can pass on to consumers.
Teves said the President had ordered local governments where power plants are located to allocate 80 percent of their share in the National Wealth Tax to subsidize residents who consume 100 kilowatt-hours or less a month.
By the end of the month, Teves said, companies in economic zones would be able to buy power from any distributor, which would bring their electricity costs down.
He said the Energy Department would also review Meralco’s contracts with independent power producers, including its own sister companies, to find other ways of lowering power costs.
“The President’s directive is for us to generate more economies and efficiencies in generation, transmission and distribution [of electricity]. So we will call for a thorough audit on these aspects,” Energy Secretary Angelo Reyes said.
At the House of Representatives, lawmakers agreed to use the P16.7 billion in tax windfall that the government stands to gain due to higher tax collections from oil imports to help poor families pay their electric bills.
Rep. Exequiel Javier, chairman of the House committee on ways and means, said the subsidy would be distributed to the intended families through the Social Welfare Department with each family getting P500.
But Bayan Muna Rep. Teddy Casiño aired concerns
Remarks:
Butterfly effect is the phrase refers to the idea that a butterfly's wings might create tiny changes in the atmosphere that may ultimately alter the path of a tornado or delay, accelerate or even prevent the occurrence of a tornado in a certain location. The flapping wing represents a small change in the initial condition of the system, which causes a chain of events leading to large-scale alterations of events. Had the butterfly not flapped its wings, the trajectory of the system might have been vastly different. Of course the butterfly cannot literally cause a tornado. The kinetic energy in a tornado is enormously larger than the energy in the turbulence of a butterfly. The kinetic energy of a tornado is ultimately provided by the sun and the butterfly can only influence certain details of weather events in a chaotic manner.
The meaning of it refers to a small voice that boggles the mind of the masses which turned into awakening of what is the truth behind the present meralco issue.
June 11, 2008
By Roy Pelovello
MALACAÑANG yesterday said customers of the Manila Electric Co. would probably see a cut of 64 centavos per kilowatt hour in their bills this year thanks to measures to bring down power rates.
Finance Secretary Margarito Teves told newsmen the economic team had proposed several such measures, which President Arroyo and the Cabinet eventually approved.
“The President is supportive of these measures. That is why she sent us to convey to you what happened during our Cabinet meeting,” Teves said.
He said the measures would lower the cost of electricity within the year.
Most of the savings would come from Meralco’s agreement to buy power from the state-run National Power Corp. at a flat rate of P4.11 per kilowatt hour, as long as the government absorbs the cost that Meralco’s other suppliers incur as a result of the deal, estimated at P1.2 billion a year.
“This is something we have to negotiate with them but I think they are agreeable to it. This will reduce rates by 58 centavos per kilowatt hour,” Teves said.
He said the government could afford the extra cost.
“This is a comparatively small amount, and this is a good deal for the government because it will result in a big cut in the bills of the consumers. Besides, a lower power rate will be good for business, and we can get back the amount through the taxes,” Teves said.
He said the government was also asking power distributors such as Meralco to absorb the value-added tax on system losses, a move that would cut the cost of electricity by 7 centavos per kilowatt hour.
The government also wants to lower the amount of system losses that distributors such as Meralco can pass on to consumers.
Teves said the President had ordered local governments where power plants are located to allocate 80 percent of their share in the National Wealth Tax to subsidize residents who consume 100 kilowatt-hours or less a month.
By the end of the month, Teves said, companies in economic zones would be able to buy power from any distributor, which would bring their electricity costs down.
He said the Energy Department would also review Meralco’s contracts with independent power producers, including its own sister companies, to find other ways of lowering power costs.
“The President’s directive is for us to generate more economies and efficiencies in generation, transmission and distribution [of electricity]. So we will call for a thorough audit on these aspects,” Energy Secretary Angelo Reyes said.
At the House of Representatives, lawmakers agreed to use the P16.7 billion in tax windfall that the government stands to gain due to higher tax collections from oil imports to help poor families pay their electric bills.
Rep. Exequiel Javier, chairman of the House committee on ways and means, said the subsidy would be distributed to the intended families through the Social Welfare Department with each family getting P500.
But Bayan Muna Rep. Teddy Casiño aired concerns
Remarks:
Butterfly effect is the phrase refers to the idea that a butterfly's wings might create tiny changes in the atmosphere that may ultimately alter the path of a tornado or delay, accelerate or even prevent the occurrence of a tornado in a certain location. The flapping wing represents a small change in the initial condition of the system, which causes a chain of events leading to large-scale alterations of events. Had the butterfly not flapped its wings, the trajectory of the system might have been vastly different. Of course the butterfly cannot literally cause a tornado. The kinetic energy in a tornado is enormously larger than the energy in the turbulence of a butterfly. The kinetic energy of a tornado is ultimately provided by the sun and the butterfly can only influence certain details of weather events in a chaotic manner.
The meaning of it refers to a small voice that boggles the mind of the masses which turned into awakening of what is the truth behind the present meralco issue.