CONSUMERS would get another reduction of P2 per kilowatt-hour (kWh) in their monthly bill once the National Power Corporation (Napocor) files a new application for incremental currency exchange rate adjustment (Icera), said Energy Regulatory Commission (ERC) Chairman Rodolfo Albano Jr.
"We expect Napocor to file a new application. We believe the consumers deserve more than what we have already approved, but we are waiting for the power agency to apply for that," said Albano.
Albano said although the ERC can cut the rates of Napocor to fully pass on its forex gains amounting to P79 billion, they are barred from doing it following the recent ruling of the Supreme Court (SC), which required that application, public hearing and publication of rate adjustments, including increase due to generation costs and foreign exchange movements be observed.
"Because of that SC decision, Napocor can afford to have a deferred accounting adjustment (DAA) on its forex gains," he noted.
The ERC approved the rate cuts of P0.31 per kWh for Napocor with the implementation in one year and will start with P0.04 per kWh covering the February 26-March 25 billing cycle for Luzon.
The next rate cut will be P0.0813 per kWh for billing period April 26-May 25, 2007 while the succeeding cuts are P0.1221 per kWh for June 26-July 25 billing cycle; and P0.0749 per kWh for August 26-Sept. 25, 2007.
Albano said Napocor must return to their consumers at least P79 billion forex gains as excess collections under Icera.
Should Napocor pass on its forex gains, the consumers would benefit more than the P30-billion refund that the SC has ordered for utility firm Manila Electric Company (Meralco).
According to the ERC, Napocor is not excluded from passing on its forex adjustments since even the distribution utilities and oil firms are imposing rollback in the pump prices of their petroleum products.
Moreover, Albano said the rate reduction was still a deferred rate cut from Napocor's forex gains in 2005 adding that more reductions are expected from the P90-billion revenue it posted largely which was due to the appreciation of the peso against the US dollar.
In November last year, Napocor filled a petition for P0.6179 per kWh for Luzon grid, P0.2605 per kWh for Visayas grid, and P0.0237 per kWh for Mindanao with the ERC asking that the rise in its Icera be passed to its consumers but the regulatory body rejected it and in fact directed the state-run power firm to implement series of rate cuts. (MSN/Sunnex)
