MANILA CITY RESOLUTION # 6165 vs. POWER RATE HIKES

Republic of the Philippines

9th City Council

City of Manila

Resolution No. 6165 – S-2014

A Resolution Expressing the Strong Opposition of the City Council of Manila to the High Electricity Rates Charged by Power Companies

WHEREAS, power generation charges in Metro Manila have risen from P4.87 per kilowatt hour (kWh) in 2000 to P11.40 per kWh in 2013 which represents an increase of 134.1 percent;

WHEREAS, the Manila Electric Company (MERALCO) has announced a pass-on additional charge of P4.15/kwh last December 2013, the highest rate hike ever proposed by the utility firm. The issue is now pending in the Supreme Court;

WHEREAS, the Energy Regulatory Commission (ERC) has ordered MERALCO to refund the overpayment of customers and to re-compute the generation charges collected from its customers;

WHEREAS, the price of electricity in Metro Manila is the third highest in the Asia-Pacific region;

WHEREAS, soaring electricity rates have tremendously affected the income of residential households, the production expense of commercial and industrial establishments, and the operation of government agencies delivering frontline services;

WHEREAS, the City of Manila has a population of about 1.7 million, all of which are MERALCO customers;

WHEREAS, a stable, affordable, and transparent electricity pricing is cited by consumers and business owners as an important factor that would improve the cost and quality of living and doing business in the city;

WHEREAS, lowering the power rates would benefit the poor and marginalized sectors of the community. Low-income households can spend more on other basic necessities such as food and water;

WHEREAS, the Temporary Restraining Order issued by the Supreme Court on the MERALCO rate hike proposal will expire on April 22, 2014;

WHEREAS, there is a growing clamor to bring down electricity rates as consumer groups continue to push for policy reforms in the energy sector;

NOW THEREFORE, be it resolved, as it is hereby resolved, to express the opposition of the City Council of Manila to the high electricity rates charged by power utility companies;

RESOLVED FURTHER, that a copy of this Resolution be furnished to all departments, offices and barangays in the City of Manila for their information, guidance and reference.

RESOLVED FINALLY, that a copy of this Resolution be given to the offices of Meralco, IPPs and ERC officials.

Respectfully Submittted:

(SGD) HON. ANTONIO ARCHIMEDES MATIAS G. CAPISTRANO

Councilor, 4th District