ERC provisionally approves a 56-centavo reduction from NPC's TOU rates for Luzon
By the next billing cycle, its generation charge in Luzon would have been P0.7431/kWh higher than what it is now because the National Power Corporation (NPC) is about to complete in the December 2008 billing cycle the implementation of the P0.7431/kWh rate reduction under the 9th GRAM and 8th ICERA that was earlier directed by the Energy Regulatory Commission (ERC). This was, however, averted by the ERC's timely action on NPC's recent GRAM and ICERA filings (11th and 10th GRAM and 10th and 9th ICERA applications) and issuance on December 22, 2008 of provisional orders approving a P0.5600/kWh reduction from NPC's TOU rates for Luzon.
The GRAM and ICERA adjustments allow NPC to recover from or refund to its customers any increase or decrease in its fuel and purchased power, and foreign currency exchange-related costs from previous months. The P0.5600/kWh reduction provisionally ordered by the ERC covers the fluctuations in NPC's costs from January 2007 to June 2008. It is effective from its December billing cycle, which means that the electricity end users will feel its effect only in January 2009 and the impact of this will be to the extent of the power supplied by NPC to the distribution utilities serving them. For electricity consumers connected to distribution utilities sourcing one hundred percent (100%) of their power requirements from NPC, its impact is the P0.1831/kWh difference between the P0.7431/kWh reduction last approved for NPC and the P0.5600/kWh reduction, which NPC will start implementing this month.
"Had the ERC granted what NPC asked for in its pending GRAM and ICERA applications, there would have been an increase from the present level by as much as 71 centavos. For the sake of our consumers, but without depriving NPC its right to recover its just and reasonable costs, such impact had to be mitigated," Chairperson Ducut said.
December 22, 2008