Friday, June 27, 2008 Napocor ordered to cut power rates in Luzon, Mindanao
THE Energy Regulatory Commission (ERC) has directed state-run National Power Corporation (Napocor) to reduce rates in Luzon and Mindanao.
In an order, the ERC directed Napocor to provisionally cut by 71.16 centavos per kilowatt-hour (kWh) the rates in Luzon and by 2.46 centavos/kWh in Mindanao.
Visayas, however, will have an increase in rates by 8.78 centavos/kWh, as applied for by Napocor using its proposed recovery periods and not those periods determined by the ERC for the Luzon grid so as to maintain the increase to that level applied for by Napocor.
The provisional approvals pertain to Napocor's Deferred Accounting Adjustment (DAA) applications on the: (1) incremental fuel and independent power producer (IPP) costs under the Generation Rate Adjustment Mechanism (the 9th Gram); and (2) foreign currency exchange rate based cost fluctuations under the Incremental Currency Exchange Rate Adjustment (the 8th Icera) only for the billing period of July to December 2006.
The adjustments will be effective starting May 26 to June 25, 2008 billing period and will run either: "(a) until the end of the corresponding recovery periods or (b) until such time that the full amount shall have been refunded or recovered or (c) until the next applications for refund or collection of Gram and Icera adjustments are filed and approved by the ERC, whichever comes earliest."
The ERC noted that Napocor's latest Gram and Icera filings did not cover the entire period of July 2006 to March 2008, which the commission earlier directed Napocor to file.
Thus, for the Gram/Icera adjustments for the Luzon grid, considering that the resulting figures indicate that a refund should be made, the ERC imputed carrying charges on the amounts that should have been refunded for the period of July 2006 to April 2008 to benefit the consumers who could have enjoyed such reductions earlier had Napocor filed its Gram and Icera applications within the timelines prescribed in the ERC guidelines.
"Napocor has been directed to expedite the filing of the application for the remaining period of January 2007 to March 2008 to further help moderate the plight of end-consumers who are already burdened with high prices of basic commodities. Also, an explanation on why the applications were made partially instead of the full period must be adequately established," the ERC said.
Manila Electric Company (Meralco) customers received a decrease of nearly 50 centavos per kWh in their bills this month after supply they purchased from the spot market dropped. (MSN/Sunnex)
