Replace old plants, Meralco urges gov’t
An official of Meralco PowerGen Corp. (MGen) said the government should let market forces take over the power industry and instead push for the replacement of old plants.
MGen senior vice president for commercial and planning Chrysogonus Herrera said the country’s high power rates has deterred the full development potential of the manufacturing industry.
Herrera said unless proactive reforms are implemented to address the issue, the country will continue to lag behind Asian neighbors in terms of socio-economic development.
Among the key things the country needs to be able to achieve a regime of low power rates is to transform the power industry from a sellers’ market and a government monopoly in generation to a buyers’ market through the full implementation of Electric Power Industry Reform Act (EPIRA).
“Distribution utilities (DUs) uncontestable customers must be empowered with competition and choice, including the decision from whom and what to buy,” he said.
Herrera also underscored the need to build new power plants to replace the country’s aging plants to ensure the country has energy security to support future economic expansion.