ERC paves the way to lower electricity via TOU
The Energy Regulatory Commission (ERC) paved the way to lower electricity rates with the offering of National Power Corporation’s (NPC) Time of Use (TOU) rates to qualified customers as ERC Resolution No. 1, Series of 2008, entitled “Resolution Adopting the Rules to Govern the Implementation of the TOU Retail Rates for Distribution Utilities (DUs) Sourcing 100% of their Power Requirements from the National Power Corporation (NPC) and/or Independent Power Producers (IPPs) with Authorized Rates Pegged at NPC’s Rate”, took effect on 01 February 2008.
The TOU rates pertain to the cost of power billed based on hourly generation rates. The TOU concept, which helps even out electricity demand during peak and off-peak period and rainy/dry seasons seek an efficient use of generation resources. Lower rates will be enjoyed by electricity consumers who are able to shift their demand from the peak period to the off-peak period.
In the said Resolution, the ERC directed DUs to offer to their customers the NPC TOU rates on a voluntary basis. Customers availing of the TOU program will be installed a special electric meter, at the customer’s cost, to enable the DU to bill on a time-sensitive system. The ERC also instructed the DUs to conduct: (1) consumer education programs to describe the benefits of the TOU rates; and (2) consumer orientations to explain the nature and the provisions of the TOU contract.
In a related development, the ERC is poised to issue a separate set of rules for DUs, like MERALCO, that have other power sources apart from NPC. The customers of MERALCO and DUs similarly situated will thereafter enjoy the benefit of TOU rates.
“The ERC is continually seeking
for ways to reduce electricity rates charged to end-users to keep up with its
mission of promoting and protecting the long-term consumer interests in terms
of a sustainable supply of reasonably-priced quality electricity to help the
country move towards a brighter future,” ERC Chairman and CEO Rodolfo
B. Albano Jr. said.
March 12, 2008