FDC In The News: On the sudden spike in electricity prices

The press release we issued yesterday, under the banner of EmPower Consumers, urging the ERC and other power industry players to explain the sudden increase in electricity prices, came out in the Philippine Daily Inquirer (Page B5) and BusinessMirror (Page 1) today.

Philippine Daily Inquirer
Inquirer Money / Breaking News
http://business.inquirer.net/money/breakingnews/view/20080425-132581/Power-firms-urged-to-explain-rate-hike-in-April

Power firms urged to explain rate hike in April
By Abigail L. Ho
Posted date: April 25, 2008

MANILA, Philippines—EmPOWER Consumers, a recently formed electricity consumers group, is calling on the Energy Regulatory Commission (ERC) to compel all power industry stakeholders to explain why electricity prices suddenly spiked this month.

In a letter to the ERC, the group, together with the group Freedom from Debt Coalition and the National Association of Electricity Consumers, said the regulatory body should convene a meeting of major industry players, such as power retailer Manila Electric Co. (Meralco), government-owned producer National Power Corp., state-owned National Transmission Corp., power bourse operator Philippine Electricity Market Corp. and the privatization agency Power Sector Assets and Liabilities Management Corp.

EmPOWER Consumers convener Milo Tanchuling said the sudden rise in Meralco rates was contrary to the ERC’s assurance that rates would remain steady.

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BusinessMirror
25 April 2008, Page 1
http://www.businessmirror.com.ph/0425&262008/headlines04.html

Higher electric rates a puzzler
By Paul A. Isla and Butch Fernandez
Reporters

THE Philippine Electricity Market Corp. (PEMC) reported that intermittent operation and high demand for power supply from coal-fired power plants have pushed up prices at the Wholesale Electricity Spot Market (WESM).

The PEMC said the WESM’s final prices for the period covering February 26 to March 25 showed an average market price or effective settlement price (ESP) of P6.72/kilowatt-hour (kWh), higher than the previous month’s ESP of P5.73/kWh.

The Manila Electric Co. (Meralco) spot purchases of electricity averaged P8.94/kWh, which is significantly higher than the WESM average for this month.

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