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Fitial appeals to CUC to reconsider surcharge
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Posted on Mar 24 2005
House Speaker Benigno R. Fitial yesterday painted a bleak picture of how the increase of the fuel surcharge rate to 3.5 cents per kwh would affect the local economy.
In a letter to Commonwealth Utilities Corp. chair Francisco Q. Guerrero, Fitial listed detrimental effects that would result from the 35-percent increase in utility costs for residential and commercial consumers.
“To put it bluntly, I believe this increase will kill businesses, especially small businesses that cannot afford the additional cost burden, which will be overwhelming. The surcharge will inevitably raise the cost of many consumer goods and staples. It will bring on more inflation, which is very bad for the economy. Please bear in mind that the surcharge may cause greater local unemployment and lower our tax collections, as businesses lay off workers to reduce costs when their revenues contract,” Fitial said.
But more than anyone else, struggling families and households will bear the brunt of the fuel surcharge, he said.
“I urge you to seriously reconsider this decision, which is strongly opposed by the Legislature, the local business community, and the general public,” Fitial said.
The CUC board of directors on Wednesday raised the fuel surcharge from 1.5 cents per kwh to the maximum allowed rate of 3.5 cents per kwh. This will bring the residential rate to 14.5 cents per kwh, and the commercial/government rate to 19.5 cents.
The increased rate will be imposed starting April 1 and will reflect on the May billing.
