Foreign firm joins power saving program
Sunday, December 24, 2006
A JAPANESE company engaged in the production of vacuum fluorescent displays and other electronic products has signed up for the Customer Choice Program (CCP) of the Manila Electric Company (Meralco) and the National Power Corporation (NPC).
Energy Secretary Raphael Lotilla said Futaba Corporation Philippines (FCP) was the first industrial company to avail of the CCP being implemented by Meralco and NPC whereby Meralco customers who consume at least one megawatt (MW) are allowed to choose between NPC time-of-use (TOU) rates or Meralco blended generation rate.
Lotilla said Futuba's enrollment in the program would "persuade other industrial and large customers to follow its lead."
Apart from the reduction in rates or savings in electricity cost to industrial customers, the energy department views the CCP as pivotal in implementing voluntary open access in the electricity industry.
Futaba Corporation in the country is located at the Philippine Economic Zone Authority (Peza) operated by the Laguna Technopark.
The energy department and electricity industry players have been seeking ways, such as the CCP, to accelerate implementation of voluntary open access way ahead of mandatory open access and retail competition to enable consumers and the entire economy to reap early benefits from the ongoing power sector reforms.
The CCP is expected to reduce the cost of electricity to large users, industrial and commercial customers by making available NPC lower TOU rates. This will help electricity users to manage their consumption by shifting energy use from peak to off-peak hours.
Electricity prices are lowest during off-peak hours or from 10 p.m. and 7 a.m., and highest during peak hours from 10 a.m. to 4 p.m., and from 6 to 9 p.m.
The Energy Regulatory Commission (ERC) granted provisional authority to Meralco and NPC last month to implement the CCP for large industrial and commercial customers with demand of at least one MW to avail of the TOU generation rates.
An effective implementation of the TOU rates is likewise expected to delay the need to build new power plants to meet the need for peak capacity, said Lotilla. (MSN/Sunnex)
posted by philpower @ 6:22 PM,
