P1.23 per kwh NPC rate hike starts this month
Wednesday, November 03, 2004
The rate hike of state–owned National Power Corporation (NPC) that will slap a substantial increase of up to R1.2318 per kilowatt hour (kwh) in generation charges to be billed to Luzon customers is already due for implementation in this month’s billing cycle.
The average increase for Visayas and Mindanao consumers will be at a more moderate level of R0.2202 per kwh and Mindanao by P0.2665 per kwh, respectively.
It would be noted that the Energy Regulatory Commission (ERC) has granted provisional authority to NPC in September allowing it to raise its generation tariff by average R0.98 per kwh, computed on a nationwide basis.
Meanwhile, in an interview with officials of the Manila Electric Company (Meralco), they noted that the increase for their customers have been tempered to just an average of R1.00 per kwh because their power supply procurement is no longer fully dependent on NPC.
As a tariff component, the generation charge is a pass-through cost that a utility service provider like Meralco is mandated to collect for eventual remittance to its power suppliers, like NPC and the independent power producers.
Latest data has shown that Meralco is just securing around 60-percent of its supply from NPC; while the rest are from its IPPs like First Gas Power Corporation, Quezon Power (Phils) Ltd. Company and Duracom.
Meanwhile, amid the implementation of the increase, Energy Secretary Vincent S. Perez emphasized that the so-called lifeline or marginalized end-users will continue to enjoy subsidized rates so the impact of the power rate hike can be eased.
"Lifeline customers will continue to enjoy discounts to cushion the full impact of the tariff increases," he said.
Within the Meralco franchise area, the energy noted that lifeline users or those with consumption of 0 to 100 kilowatt hours will be as follows: 50-percent discount for those using 0-50 kwhs; 35-percent discount for 51-70 kwhs usage; and 20-percent discount for those with 71 to 100 kwhs.
The utility firm said it will provide full figures on the actual impact of the rate increase per customer class once these are made available.
The long-delayed tariff increase being batted for by NPC is expected to shore up its flagging financial condition; having registered a historic-high losses of R113.23 billion last year.
NPC officials noted the company has been suffering from financial hemorrhage due to confluence of factors; such as under recovery due to an earlier decision to cap its rates by R0.40 per kwh; inability to pass on fuel costs, such as that of its Malampaya take-or-pay gas supply; and the remaining costs that it cannot pass on pending ERC approval of some of its IPP contracts. (MMV)
posted by philpower @ 9:08 AM,
