12 Jan 2012
The Power Sector Assets and Liabilities Management (PSALM) Corporation has effectively extended the Ecozone Rate Program (ERP) with the extension of its Transition Supply Contract (TSC) with the Manila Electric Company (Meralco) for a maximum period of one year or until three months after the introduction of open access and retail competition, whichever comes earlier, subject to the approval of the Energy Regulatory Commission (ERC).
According to PSALM President and Chief Executive Officer, Emmanuel R. Ledesma Jr., with the ERP extension, Meralco will continuously charge discounted power rates to 632 companies operating in the 19 economic zones within the Meralco franchise area. Ledesma also assured the public that the ERP extension will not result in higher power rates or increase the Universal Charge.
"The extension of the ERP supports the government's investment stimulus package for ecozone locators to further boost the economy and to bolster the competitiveness of Philippine manufacturers," Ledesma said. This decision was approved by the PSALM Board of Directors, which includes the heads of the Department of Finance, the Department of Energy, and the Department of Trade and Industry.
Ledesma further explained that the government's investment stimulus package not only ensures that the economic zone locators will continuously enjoy discounted power rates as an incentive, but also takes into consideration that PSALM will not incur additional operating losses as a result.
PSALM has been constantly coordinating with the Philippine Economic Zone Authority (PEZA) in the implementation of this project, PEZA being the lead agency tasked by the Department of Trade and Industry to handle the matter.
PSALM recently decided to extend its TSC with Meralco to ensure the stability of electricity prices and to retain the power rate charged within the ecozones so as not to hinder the country's investment growth and displace millions of workers employed by ecozone locators.
These companies account for 43% of the aggregate Philippine manufacturing exports, or around USD19 billion, and provide 222,213 jobs.
Strategic Communications and Partnership Division |