ERC: Meralco customers in ecozones to enjoy lower rates
Chairman Rodolfo B. Albano, Jr. of the ERC (Energy Regulatory Commission) acted with dispatch to allow industries located in economic zones (ecozones) to enjoy lower electricity rates immediately. The ERC Chairman announced that the ERC granted clearance for MERALCO (Manila Electric Company) and NPC (National Power Corporation) to implement their MOA (Memorandum of Agreement) that calls for the provision of preferential generation rates to high load factor industrial customers that are accredited by PEZA (Philippine Economic Zone Authority). The clearance was granted on the following conditions: (i) Any reduction of revenues on the part of MERALCO, NPC and TRANSCO (National Transmission Corporation) must not be recovered from or passed on their other customers; (ii) Any losses that may be incurred by the utilities should not give rise to any form of cross-subsidy; and (iii) All similarly-situated customers shall be treated alike and be accorded the same privilege.
“The ERC granted its clearance for the MOA implementation to promote the best interest of the national economy. Lower electricity rates will mean lower costs for the products and services of ecozone locaters and will boost their competitiveness in the global market. The operational and economic efficiency of these industries will eventually lead to higher productivity and more jobs,” Chairman Albano explained.
Industrial customers of MERALCO located in ecozones, will be charged a flat rate of PhP3.52/kWh if their annual contract energy fall within the 1,000 GWh to 2,200 GWh range. Industries within the 2,201 GWh – 2,500 GWh range will be charged PhP3.49/kWh while those with an annual contract energy of 2,501 GWh and above will pay PhP3.46/kWh. The load factor of the industrial customer must be at least 80% of its annual contract energy.
Contract energy is the energy nominated by MERALCO and allocated by the NPC per billing period on an hourly basis. The MOA requires that the contract energy must be over and above all existing contract energy commitments by MERALCO under the TSC (Transition Supply Contract), CCP (Customer Choice Program), ODPS (One Day Power Sales Program) or any other ERC-approved special programs provided by the NPC.
“The
ERC assures its stakeholders that it will continuously find ways to bring more
affordable, quality and reliable electricity service as it strives to lead the
electric power industry towards a brighter future,” Chairman Albano concluded.
September 26, 2007