[Press Release] Workers want full prohibition not a compromise deal on power rate hike -Nagkaisa

Workers want full prohibition not a compromise deal on power rate hike

Organized labor under Nagkaisa is insisting for no less than the full prohibition of the December 2013 and January 2014 rate hike, rejecting in effect the Philippine Electricity Market Corporation’s (PEMC) recomputed rate that is 80 percent lower than the approved market rate in December and January.

NAGKAISA

PEMC, which operates the Wholesale Electricity Spot Market (WESM), said on Tuesday that it had finished its recalculation of market prices in compliance with the Energy Regulatory Commission (ERC) order of March 3. For the December 2013 billing, it set the new spot market rates at P6.007 (76.35 percent lower) than the P25.404 per kWh, and P6.246 (77.98 percent lower) than the original P28.367 per kWh for the billing month of January 2014.

“The numbers are out and PEMC’s recomputed rates bared all the elements of market failure. We insist that any residual cost coming from this failure must be deemed unjust and therefore should not be passed on to consumers,” said Wilson Fortaleza of Nagkaisa power team.

Fortaleza, who is also the spokesperson of Partido ng Manggagawa (PM), argued further that in this particular case, the market failure was also a result of regulatory failure the more it should not be borne by the consumers.

He pointed specifically to the failures of the ERC and PEMC to regulate the market despite the expected tightness in supply due to the Malampaya shutdown and also being aware of official reports citing repeated occurrence of market abuse since WESM started operating in Luzon in 2006; and the failure on the part of the Department of Energy (DoE) to ensure reliable supply of power and impose sanctions on erring power plants.

Tomorrow, Nagkaisa and the Power to the People (P2P) network will stage a picket rally at the PEMC to call for the suspension of WESM operations, saying it is not the consumers but the rich owners of generation and distribution companies who profitably gain from this fraudulent trading scheme.

There are also reports that the PEMC Board, who are not independent but made up of the players themselves, receive fat compensations and other perks, including brand new service vehicles.

“We challenge the government to tell the people the truth that WESM won’t work in a very small and highly concentrated market ruled by certified predators in the power industry,” concluded Fortaleza.

NAGKAISA!
PRESS RELEASE
20 March 2014
Contact: Wilson Fortaleza
09178233956

All submissions are republished and redistributed in the same way that it was originally published online and sent to us. We may edit submission in a way that does not alter or change the original material.

Human Rights Online Philippines does not hold copyright over these materials. Author/s and original source/s of information are retained including the URL contained within the tagline and byline of the articles, news information, photos etc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s