No new NPC rate hike in October

“The Energy Regulatory Commission (ERC) has not authorized any new rate adjustment for NPC (National Power Corporation) to take effect in October,” Chairman and CEO Rodolfo Albano, Jr. stated in reply to newspaper articles mentioning such rate hike. “The ERC’s June 12, 2007 Decision on the NPC’s ICERA application docketed as ERC Case No. 2006-072RC merely confirmed the provisional adjustment authorized for NPC in February 2007, which NPC has been implementing since its February 26, 2007 to March 25, 2007 billing, and did not authorize any new adjustment for NPC,” Chairman Albano clarified. “There shall be no reimposition of such adjustments that the NPC has already implemented,” Chairman Albano assured.

The ICERA (Incremental Currency Exchange Rate Adjustment) mechanism allows NPC to recover additional costs due to fluctuations in the FOREX (foreign exchange). NPC’s application (ERC Case No. 2006-072RC) covers the period from November 2005 to January 2006 only. It does not cover the subsequent months when the peso further strengthened against the dollar, which translates to reduction in rates. The NPC may implement the February adjustments only during the recovery periods specified by the ERC, or until the additional costs allowed to be recovered are fully recovered.

“The ERC assures the public that measures had been undertaken to mitigate the impact of such adjustment on the consuming public in the performance of it’s solemn duty to protect the consumers’ welfare and interest,” Chairman Albano concluded.

August 28 , 2007