Friday, July 06, 2007 Napocor wants study of Epira's 'unbundling' provision
THE National Power Corporation (Napocor) is pushing for a review of the "unbundling" provision in the Electric Power Industry Reform Act (Epira) in order to get the real cost of electricity used by consumers.
"It has always been a question of cost for the end-consumers. Since the Epira emphasizes transparency, maybe it's high time that we review the unbundling provision in the law and see how we can make our power bills more transparent," said Napocor president Cyril Del Callar.
In unbundling the generation charge, del Callar said it will give electricity end-consumers, particularly households and businesses, a clear picture of how much electricity costs, being sourced by distribution utilities (DUs), and electric cooperatives from their suppliers.
Del Callar further said it is important to provide "accurate and timely information" to end-consumers of electricity on what factors affect power rates.
"This can be made possible if all major players in the power industry would come out with an information, education and communication program (IEC) that would explain each one's roles in the industry. For power rates, we can include discussions on how they are determined and what factors affect their movements and fluctuations," he said.
The Napocor is set to implement this month a rate reduction, which will be reflected in the billing cycle of June 26 to July 25, 2007 of the contracted Napocor customers.
Luzon customers of Napocor will enjoy a P0.4733 per kilowatt hour drop in Luzon while those in the Visayas will see a P0.1836 decrease in their bills and those in Mindanao will have a P0.2758-reduction in their bills.
Del Callar noted that the IEC Program should be sensitive and attuned to the needs of consumers and should also include demand-side management tips on how to save on electricity costs on the household consumer level.
"Furthermore, it is important to stop claims as to who provides the cheaper electricity when we all know that at times, market forces impact on the rates and that we are still under a regulatory environment. We should strike a balance between the two and reconcile the inconsistencies," he added. (MSN/Sunnex)
