$3 million power subsidy eyed

This is the result of the leadership meeting on Wednesday to address the energy crisis.Kione Isechal, chairman of the Palau Public Utilities board said that the implementation of the new power rate will push through as scheduled but as soon as the measure is approved, the amount will be credited to the recipient of the subsidy.The passage of the measure however will depend on how fast the lawmakers will take action on the matter.Under the subsidy, these power consumers will pay the rate prior to the increase.Isechal the amount of the planned subsidy is $3 million.Residential consumers who consumes less than 500 kilowatt per hour are considered low-income earners and are eligible for subsidy. These consumers will now be paying 30 cents per kilowatt per hour (kwh) from 27 cents.Small businesses are those whohave power consumption of500 to 2,000 kwh. The rate was increased from 27 cents to 38 cents.Costumers with a consumption of 2,000 or more will now pay 42 cents kwh frpm 27 cents.Isechal said PPUC cannot put on hold the planned power hike because it will mean a loss of $700,000 a month.This loss will affect its purchase of fuel.He said there was a need for an increase because of the spiraling increase of oil in the world market.Currently PPUC is purchasing diesel at the amount of $3.54 per gallon but by June the fuel supplier will increase it to $4.11.He said the $3 million subsidy was based on the projected consumption.The leadership meeting among lawmakers, executive branch and PPUC was scheduled following a so –called energy situation.Four senators earlier called for a leadership meeting following a “reality-check” hearing last week.A hearing was conducted last week among business owners to determine the economic situation of Palau.In the hearing several companies said an increase in power rates will cripple their operations.The House of Delegates however said passage of revenue-generating measures which are pending in the Senate will resolve the economic crisis.President Remengesau in a letter to the said that previous leadership meetings have been conducted but the Senate has failed to follow through once the meeting is concluded.He said it appears that it is the Senate who fails to see the reality.“Frankly the people have become disillusioned with the Senate inaction and political gamesmanship. Rhetoric is a poor substitute for real solution. And yet when a situation is most critical and the need for cooperation among our leaders is greatest , the chatter gets turned to the highest volume,” Remengesau said.