Tuesday, November 13, 2007 Power rate cut to continue until next month: Napocor
STATE-run National Power Corporation (Napocor) said its customers will still continue to enjoy reduction in rates until December.
Records of the Electricity Tariff Division showed that in Luzon, Napocor has reduced its rates by a total of P1.5867 per kilowatt-hour (kWh) as of October this year.
The latest decrease will be immediately implemented by Napocor, and is expected to be reflected in the December billing statements of residential end-users, the power firm said.
Cyril del Callar, president of Napocor, noted that the company “had reduced its rates in the grid five times over an eight-month period.”
In March, Napocor said it has implemented a 4.30 per kilowatt hour (kWh) centavos reduction and another 8.13 centavos per kWh in May.
Another 47.33 centavo per kWh drop was imposed by Napocor in July, a 7.49 centavo in September and the last was in October with 25.43 centavos per kWh.
With the series of reductions, Napocor rates in Luzon stand at P4.1619 per kWh as of October.
In the Visayas, Napocor brought down its rates by a total of 57 centavos per kWh as of October.
This consists of a 31.51 centavo per kWh rate reduction given in March, another rate cut of 18.36 centavos per kWh in June, and a third reduction amounting to 7.13 centavos per kWh in October. Napocor’s rates in the Visayas stand at P2.8343 per kWh.
For the Mindanao grid, Napocor dropped its rates by 34.40 centavos per kWh as of October. As in the Visayas grid, there were three rounds of rate reductions in Mindanao, 0.45 centavo per kWh in March; 27.58 centavos per kWh in July; and 6.37 centavos per kWh in October. Napocor rates are lowest in Mindanao at P2.4183 per kWh.
Del Callar attributed the series of downward rate adjustments to the strong financial performance of Napocor, which has been consistently improving since 2005.
Napocor made a dramatic financial turnaround in 2005 by posting a net income of P86 billion after being in the red for seven straight years.
Last year, Napocor surpassed its 2005 performance with an unprecedented net income of P90 billion -- the biggest in the company’s history.
Meanwhile, del Callar appealed to Napocor customers to pass on the benefits of the series of rate reductions to their customers, in particular the ordinary households and the small industries, so that they, too, can enjoy the fruits of the firm’s continued efforts to bring down its rates.
“These reductions should also benefit end-consumers, particularly the customers of distribution utilities and electric cooperatives that are under contract with Napocor,” National Power,” said del Callar. (MSN/Sunnex)
