Semiconductor Firms Seek Power Rate Relief; File Bid to Lift Cross Subsidies
Byline: MYRNA M. VELASCO
The Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) has filed a petition with the Energy Regulatory Commission (ERC) seeking the removal of inter-class subsidies that is seen to provide them rate reduction of up to P0.6306 per kilowatt hour (kwh) upon implementation.
In its pleading, SEIPI has batted for a two-phased removal of said cross subsidies starting with customers having loads of 2.0 to 10 megawatts; and the second phase would be for those with usage from 0.04 to 2.0 MWs.
Its calculation showed that the phaseout of the inter-class subsidy would result in P0.6306 per kwh reduction in electricity rates to be paid for by industrial customers with loads of 10 MWs or higher; and P0.5139 per kwh of the bills of industrial customers with loads of 2.0 MWs to less than 1.0-MWs; as based on rates of Manila Electric Company.
For those consuming 0.2 to less than 2.0 MWs, the impact would be at P0.2738 per kwh; while those with usage of 0.04 to less than 0.2 MWs would experience rate relief of P0.0892 per kwh of their bills.
SEIPI further averred that high cost of power has been crippling the competitiveness of the semiconductor and electronics sectors as compared to their counterparts in other parts of the world. The organization counts around 210 members, with 62 firms embedded within the Meralco franchise area.
It noted that the cost of power of these entities account for as much as 41 percent of their total operating costs. …