PRESS STATEMENT May 6, 2008 Militant solons: Napocor and Meralco earning billions, should substantially reduce prices now! THE MILITANT BLOC in the House of Representatives is calling on the Arroyo government and Meralco to jointly provide relief to power consumers by substantially lowering electricity rates immediately, considering the fact that both parties have profited too much from the consuming public. It is the height of greed and insensitivity for state-owned National Power Corporation and Meralco to be swimming in profits while majority of our people suffer from unconscionably high power rates. Napocor is number one in the Top 1000 corporations in the Philippines in 2005 and 2006. The power company posted a net income of P90 billion for 2006, up from P86 billion in 2005. Napocor still has 15 IPP power plants, the largest of which are the 1,200-MW Ilijan natural gas-fired power plant, the 700-MW Pagbilao coal-fired power plant, the 1,000-MW Sual coal-fired power plant, and the 345-MW San Roque hydroelectric power plant. Number three in the list is Meralco, which has posted a 23 % increase and raked in net profits of P655 million in the first quarter of 2008. In 2006, the country’s largest distribution utility raked in 13.37 billion in net revenues. Both Napocor and Meralco callously continue raking in profits from millions of consumers in these times of crisis. Since April, electricity rates have gone up to more than 50 percent after Meralco imposed adjustments on its generation, distribution, system loss, and transmission charges. The overall increase in the billings averaged P0.97 per kilowatt hour increase. The company hiked its generation charges by P0.51 per kWh and its distribution charges by P0.30 per kWh. The truth of the matter is that both Napocor and Meralco are continuously raking in profits even with the food shortage, the rice crisis and rampaging hikes in prices of oil and consumer goods. We demand that Mrs. Arroyo order the Napocor to immediately lower its rates and address apparent anomalies in its coal procurement system that have jacked up its rates. We also call on Meralco's owners to SUBSTANTIALLY reduce their rates and give their consumers some respite At the same time, Mrs. Arroyo must immediately order the removal of the Value Added Tax and royalties levied on power, electricity, natural gas, oil and oil products. Government must re-impose stringent price controls on electricity and oil prices. In the long term, the Electric Power Industry Reform Act (EPIRA) should be repealed and a new energy policy be crafted on the principles of nationalization, regulation, self-sufficiency and sustainability. The Filipino people deserve a respite. Napocor and Meralco should rein in their profiteering and lower electricity rates immediately! TEDDY A. CASIÑO SATUR C. OCAMPO Bayan Muna CRISPIN B. BELTRAN Anakpawis Party-List LIZA L. MAZA LUZVIMINDA C. ILAGAN Gabriela Women’s Party