Monday, October 01, 2007 Power rate to decrease before Christmas
A P1 per kilowatt-hour (kWh) power rate cut is set to be implemented by the distribution giant Manila Electric Company (Meralco) before Christmas.
This, after the National Power Corporation (Napocor) revealed that they have reconciled with Meralco the amount which the utility firm will pass on to their customers under the mandated rate reduction (MRR) prescribed under the Electric Power Industry Reform Act (Epira) for power supply procured from the state-run power company.
Napocor president Cyril del Callar said Meralco since December 2006 up to September 2007 has not passed on to their residential customers the 30 centavos reduction as mandated.
“We have not felt or seen any reckoning from the signing of the contract in November last year. There should be a corresponding rate cut for all residential consumers of Meralco,” del Callar said.
Meralco is sourcing between 35 to 40 percent of its supply from Napocor estimated to account for P0.10 to P0.12 per kWh reduction under the MRR.
Del Callar noted that for distribution utilities getting 100-percent supply from Napocor, their residential customers are fully getting the mandated P0.30 per kWh rate cut.
However, for those distribution utilities not sourcing 100 percent of their supply from Napocor, “then there must be a prorated rate for residential consumers' billing statement.”
But it was settled that the final amount of reduction shall depend on the Napocor-sourced supply delivered to its residential end-users.
But Meralco vice president and utility economics head Ivanna dela Peña said Napocor must first pass on to them the reduction for them to implement the power rate cut to their customers.
"Meralco has been persistently following up with Napocor since November last year the mandated rate reductions consumers should get under the Epira. We have been writing them about that. If it is true that Napocor has finally settled its books after 10 months on the MRR, that would be a welcome development for our consumers," said dela Peña.
Section 72 of the Epira law states that “residential end-users shall be granted a rate reduction from Napocor rates of P0.30 per kWh. Such reduction shall be reflected as a separate item in the consumer billing statement.”
Since Meralco is getting its supply from Napocor during peak hours, del Callar believed that residential consumers are using more on those periods and they should benefit from this reduction. (MSN/Sunnex)
