Long overdue

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Editor GUILLERMO TEJIDA III Desk Editor NANETTE L. GUADALQUIVER Busines Editor CEDELF P. TUPAS Sports Editor RENE GENOVE Bureau Chief, Dumaguete MAJA P. DELY Advertising Coordinator

CARLOS ANTONIO L. LEONARDIA Administrative Officer

The National Power Corp. has been allowed by the Energy Regulatory Commission to reduce power rates all over the country, with Visayas being the biggest winner by getting a rate cut of up to 31.5 centavos per KWh. This rate reduction reflects changes in the generation cost of Napocor between November 2005 and January 2006, and does not yet consider the strengthening of the Philippine Currency in the recent months.

This power rate cut is long overdue. International prices of crude oil have stabilized and the Philippine peso has strengthened significantly in recent months. With that knowledge, we expect more reductions to follow very soon, and as taxpayers, we expect the concerned Government agencies to be at the forefront of this crusade. The ERC, in particular, needs to be more pro-active when it comes to rate adjustments and instead of waiting for the power producers, suppliers and distributors to request for rate cuts, it should take the lead in ensuring that the Filipino people are not paying for overpriced energy. Their bureaucracy has to be streamlined so that the consumers benefit from adjustments in the price of international crude and the foreign exchange rate just as quickly when prices drop as when prices increase. The Filipino people would love to see a government agency that is actually prioritizing their welfare instead of advancing the interests of the big and inefficient businesses in the power industry.

Ultimately, any kind of power rate reduction is good news to the public, especially because these adjustments do not come often and electric power is a basic utility that many of us cannot live without. Learning that the possibility of more rate cuts, which can be attributed to the Peso's great performance, are in the horizon also comes as good news for a country that has one of the highest costs of electricity in the region. Not only does expensive electricity drive away foreign investors, it is also an unnecessary burden on the already struggling Filipino masses whose existence is still on a hand-to-mouth basis. If this rate cut on this essential utility can be sustained and even augmented by future reductions, it could be a sign that the benefits of the Government's macro economic policies are finally trickling down to the average Filipino.*