The support took the form of a letter signed and sent this week by PHILEXPORT president Sergio R. Ortiz-Luis, Jr. to President Gloria Macapagal-Arroyo.

"Philexport expresses its strong support for the position of our member, the Semiconductors and Electronics Industry Philippines, Inc. (SEIPI) pushing forward Pres. Arroyo’s initiative for the Philippine Economic Zone Authority (PEZA) to exercise its exclusive jurisdiction over utilities within economic zones." said Ortiz-Luis.

Ortiz-Luis zeroed in on the power of PEZA over the generation, supply and distribution of electricity

The export leader appealed to the chief executive for concrete initiatives at tackling competitiveness issues and creating a business environment that would give Philippine exporters a fighting chance.

PHILEXPORT was just the latest in the export community that threw its support to the direct power purchases of economic zone-based exporters.

The quasi-government Export Development Council (EDC) the super-body on top export offensive passed a resolution endorsing the suggestion.

Presidential management staff chief Ricardo Saludo forwarded to the heads of the energy, trade, economic zone, the Energy Regulatory Board and the National Power Corporation a legal opinion made by the Department of Justice said that the Electric Power Industry Reform Act had no clear provision overriding the power of the PEZA on electricity supply in the zones under it.

The high cost of electricity in the Philippines, only the second highest in Asia after Japan, has been pinpointed as one of the biggest obstacles to the ability of Philippine companies to compete against imported goods in the local market and against similar goods in the international marketplace.

The prohibitive cost of electric power was identified as of the few areas identified for urgent action by the National Competitiveness Council ordered form by the president last October.

Rates actually increased instead of going down after the EPIRA was enacted into law. To partly remedy the situation, export zone locators led by SEIPI suggested that they bundle their electricity needs as group of companies and buy wholesale directly from the generating companies.