Friday, March 14, 2008 ERC wants TOU rates offered to power consumers
THE Energy Regulatory Commission (ERC) announced last Thursday that electricity rates being offered by the National Power Corporation (Napocor) under the time-of-use-rate (TOU) would be lower.
This, after the ERC approved Resolution No. 1, Series of 2008, entitled "Resolution Adopting the Rules to Govern the Implementation of the TOU Retail Rates for Distribution Utilities (DUs) Sourcing 100 percent of their Power Requirements from the National Power Corporation (Napocor) and/or Independent Power Producers (IPPs) with Authorized Rates Pegged at Napocor's Rate".
In the resolution, the ERC directed DUs to offer to their customers the Napocor TOU rates on a voluntary basis.
Customers availing of the TOU program will be installed a special electric meter, at the customer's cost, to enable the DU to bill on a time-sensitive system. The order took effect on February 1, 2008.
"The ERC is continually seeking for ways to reduce electricity rates charged to end-users to keep up with its mission of promoting and protecting the long-term consumer interests in terms of a sustainable supply of reasonably-priced quality electricity to help the country move towards a brighter future," said ERC chairman Rodolfo Albano Jr.
The ERC also instructed the DUs to conduct a consumer education programs to describe the benefits of the TOU rates and consumer orientations to explain the nature and the provisions of the TOU contract.
The TOU rates pertain to the cost of power billed based on hourly generation rates.
The TOU concept, which helps even out electricity demand during peak and off-peak period and rainy/dry seasons seek an efficient use of generation resources.
Lower rates will be enjoyed by electricity consumers who are able to shift their demand from the peak period to the off-peak period.
Meanwhile, the ERC is also set to issue separate rules for DUs, like Manila Electric Company, that have other power sources aside from Napocor. The customers of Meralco and DUs similarly situated will thereafter enjoy the benefit of TOU rates. (MSN/Sunnex)
