ERC lowers NPC generation rate for Luzon
The ERC (Energy Regulatory Commission) lowered the NPC’s (National Power Corporation) generation rate for Luzon as it made final the provisional authority it granted to NPC in September 2007. The adjustments correspond to NPC’s fuel and purchase power costs as well as its FOREX costs for the period February 2006 to June 2006, which were lower than the previous months because of improvements in fuel and currency exchange rates.
“The said provisional adjustments in the generation rates reflected average reductions of 25 centavos/kWh for Luzon; 7 centavos/kWh for Visayas; and 6 centavos/kWh for Mindanao which were effected in the November 2007 billing period,” ERC Chairman and CEO Rodolfo B. Albano Jr. said. “The final authority, on the other hand, will further reduce the rate for Luzon by 1.6 centavos/kWh,” Chairman Albano added.
The final authorities were issued in ERC Case Nos. 2007-099 RC and 2007-100 RC pertaining to NPC’s recovery of incremental fuel and independent power producer (IPP) costs and foreign currency exchange rate fluctuation costs under the Incremental Currency Exchange Rate Adjustment (ICERA).
“ERC expects more reductions in the generation rate applications to be filed by NPC, particularly for the ICERA, given the substantial appreciation of the Philippine Peso against some foreign currencies in the months after June 2006,” Chairman Albano concluded.
January 11, 2008