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Sunday, April 24, 2005
Power cost up by 47 cents per kwh for Visayas consumers
By Liberty A. Pinili
Sun.Star Staff Reporter
ALTHOUGH the Energy Regulatory Commission (ERC) has decreased by almost 15 centavos the average rate that can be imposed by the National Power Corp. (Napocor) in the Visayas, the cost of electricity in the entire grid will still go up by about 47 centavos.
This means an increase of about P89.48 for 200 kilowatt-hours (kwh) of electricity consumed in the Visayas, said Lito Vasquez of the Freedom from Debt Coalition (FDC)-Cebu.
The ERC released Friday an order granting Napocor final authority to implement a total increase of 42 centavos per kwh nationwide, starting with the billing period of April to May this year.
For Visayas, there is a reduction of about 15 centavos from generation rates and foreign exchange adjustments.
However, the increase granted by ERC to Napocor for the generation rate adjustment mechanism (Gram) for Visayas is 47 centavos.
Vasquez said consumers may have no other recourse but to go to the Supreme Court to oppose the increase.
Visayan Electric Co. (Veco) public information officer Ethel Taneo-Natera said they will only know the actual cost of power from Napocor once they get the bill from the state-owned agency.
For the Visayas grid, the ERC granted—through three separate orders—Napocor final authority to impose an average rate base of P2.89 per kwh.
On top of the average rate base, Napocor is also authorized to impose 47 centavos, which make up the recovery of fuel cost and purchased power costs through Gram.
The ERC directed Napocor, though, to deduct almost 10 centavos as incremental currency exchange rate adjustment (Icera) from the total average power rate in Visayas.
The deduction was required as Napocor had been imposing deferred accounting adjustments (DAA) debt service of P.0967 in the Visayas, even though it has no build-operate-transfer projects in the area.
Icera is the mechanism used for Napocor to recover costs of foreign exchange rate adjustments. The DAA is a component of the Icera.
Before Napocor was granted a temporary increase of 22 centavos in the Visayas (or 98 centavos nationwide) in September last year, the average power rate in the Visayas grid was P2.82 per kwh.
After the temporary increase, it went up to about P3.04 per kwh. With the latest order for a 15-centavo (rounded off from P.1495) deduction, average power rate in the Visayas will be P2.89 per kwh.
However, with the additional 47 centavos from the approved Gram, the cost of power from Napocor will go up to P3.36 per kwh.
FDC is still contemplating what actions to take in relation to the increase.
(April 24, 2005 issue)
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