Agence France-Presse

President Arroyo's aides are to meet with executives of the top power distributor in the Philippines to look for ways to cut electricity rates, officials said Friday.

The meeting with Manila Electric Co. (Meralco) to discuss some of Asia's highest electricity charges will be held on May 29, said Finance Secretary Margarito Teves.

"This discussion will focus on the overall objective on how to reduce the cost of electricity," Teves told reporters, adding the government team will present its proposals to Meralco's management.

The utility delivers electricity to Manila and surrounding provinces that together contribute at least half the country's economic output.

Arroyo and business leaders have often complained that electricity rates in the Philippines are among the highest in Asia, next only to Japan.

Business surveys indicate it is a major hindrance to investment in the country.

The Philippine government, through a state pension fund, is one of the largest shareholders of Meralco. First Philippine Holdings Corp., owned by one of the country's wealthiest families, appoints the utility's managers.

Winston Garcia, the head of the state pension fund the Government Service Insurance System, which is among Meralco's biggest shareholders, has suggested the government should take over Meralco's management.

But Teves stressed that the government was not focused on that.

"We are not focusing on the management change as far as our work is concerned," he said, but added he was not ruling out the possibility of Garcia tabling the proposal.

First Philippine Holding chief executive Oscar Lopez last week rejected allegations of unfair dealings between Meralco and a First Philippine Holding unit that supplies the utility with transformers.

The allegations were aired at a Senate inquiry into high power rates.