Power Hike
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Transcript of Power Hike
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PRESYO
TRABAHOK ITA
General Principles
TAASPRESYO
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PRESYO
TRABAHOK ITA
Governmentis not powerless.
TAASPRESYO
PRINCIPLE #1
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Government
should not profit
from people’s misery .
PRESYO
TRABAHOK ITA
Di dapat pagkakitaan ng gobyerno ang kahirapan ng tao.
TAASPRESYO
PRINCIPLE #2
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HEARINGS
ANG KAILANGAN
INVESTIGATIONS
Tama na!
Tama na!
Aksyon na!PRESYO
TRABAHOK ITA
TAASPRESYO
Government should beresults oriented
PRINCIPLE #3
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Sobrang pagtaas ng presyo
ng kuryente ng Disyembre
hanggang ngayon.
PRESYO
TRABAHOK ITA
ISSUE #1
TAASPRESYO
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May nangyayari ba?
Panay hearing.
Panay salita.
Nasaan ang solusyon?
PRESYO
TRABAHOK ITA
ISSUE #3
TAASPRESYO
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Sobrang pagtaas ng presyo
ng kuryente ng Disyembre
hanggang ngayon
TAASPRESYO
PRESYO
TRABAHOK ITA
ISSUE #1
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PRESYO
TRABAHOK ITA
POWER RATEINCREASE
P4.15 KWH
TAASPRESYO
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WHAT DOES A P4.15 KWH POWER RATE INCREASE
MEAN FOR THE REGULAR HOUSEHOLD?
PRESYO
TRABAHOK ITA
TAASPRESYO
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“The present system itself
encourages collusion, windfallprofits, and high prices”
PRESYO
TRABAHOK ITA
Investigation Ongoing - Regardless of the
factual findings, one thing is clear
TAASPRESYO
- Sen. Alan Cayetano
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PRESYO
TRABAHOK ITA
TAASPRESYO
ISSUE #2
Bago pa tumaas nung
Disyembre isa na tayo sapinakamataas na presyo
ng kuryente sa mundo
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The Philippines already has the highest electricity prices in the world.
COMPARATIVE RETAIL PRICES, 2011(In Philippine peso per kWh)
HIGH COST OF ELECTRICITY IN THE PHILIPPINES
RESIDENTIALLOW VOLTAGECOMMERCIAL
LOW VOLTAGEINDUSTRIAL
HIGH VOLTAGEINDUSTRIAL
PhilippinesSingaporeIndonesiaMalaysiaThailand
9.779.582.263.284.79
10.089.587.166.255.82
8.939.245.535.505.54
8.088.294.704.964.99
PRESYO
TRABAHOK ITA
TAAS
PRESYO
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According to a USAID study From 2000 to 2013 (before
the price hike), Meralco prices increased by a whopping
131% from P4.87 per kwh to P11.23 per kwh.
HIGH COST OF ELECTRICITY IN THE PHILIPPINES
PRESYO
TRABAHOK ITA
TAAS
PRESYO
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PRESYO
TRABAHOK ITA
TAAS
PRESYO
ISSUE #3
May nangyayari ba?
Panay hearing.
Panay salita.
Nasaan ang solusyon?
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Amend EPIRA to address the findings of the
various hearings that have shown the weaknesses
in the present system.
Solution #1
PRESYO
TRABAHOK ITA
TAAS
PRESYO
Fast track open access
Create environment for more players to
come invest in the power sector…more supply = lower prices
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Reduce VAT and Royalties
Solution #2
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Simulated Reduction in Composite Prices as a Result of Policy Adjustments (per kWh in Philippine peso)
ACCORDING TO THE USAID if we reduce VAT and Royalties
we can bring down power costs by P1.4 per kWh
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Foregone
annual revenue
Additional
annual GDP
Additional annual
Tax revenue
Additional annual
non-Tax revenue
P13.84 Billion
P62.35 Billion
P8.72 Billion
P989.4 Million
Effects of full waiver of royalty payments and passing on discounted rates to all customers
P58.22 Billion Additional revenue
and GDP
EFFECTS OF REDUCING VAT
AND NATURAL GAS ROYALTIES ( Dante Canlas )
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If Subsidies and taxes are removed,
there is a different picture
COMPARATIVE RETAIL PRICES, 2011(In Philippine peso per kWh)
HIGH COST OF ELECTRICITY IN THE PHILIPPINES
RESIDENTIALLOW VOLTAGECOMMERCIAL
LOW VOLTAGEINDUSTRIAL
HIGH VOLTAGEINDUSTRIAL
PhilippinesSingaporeIndonesiaMalaysiaThailand
8.958.956.025.706.15
9.248.957.518.547.11
8.228.637.397.816.85
7.427.426.167.306.33
Despite other countries having large deposits of oil, natural gas, etc…
we can be competitive
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TRABAHOK ITA
TAAS
PRESYO
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Targeted subsidies.
PRESYO
TRABAHOK ITA
TAAS
PRESYO
Solution #2
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Targeted subsidies.
Pre Paid Electricity Cards INDONESIA, SOUTH AFRICA
Discounts depending on consumption MALAYSIA, THAILAND
Direct Vouchers SINGAPORE
DISCOUNTS
PRESYO
TRABAHOK ITA
TAAS
PRESYO
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KUNG HINDI TAYO AAKSYON…
MALALA PA DITO MANGYAYARI
4.4% INFLATIONWill mean the average Filipino
WILL LOSE 20 PESOS PER DAY due to higher prices of goods
IMF upgrades growthprojection but warns of
higher inflation
Inflation up to
4.4% from 3.3%
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TRABAHOK ITA
TAAS
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The price of rice has also been constantly increasing
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TRABAHOK ITA
TAAS
PRESYO
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I urge the administration
to put together a high level public and private,
executive and legislative group to work on theamendments to the EPIRA and Tax laws.
That we may finally solve the problem of high
electricity rates and insufficiency of power supply.
PRESYO
TRABAHOKITA
TAAS
PRESYO
