Wednesday, October 27, 2010

Power-rate increase in Subic Free Port looms

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AN increase in the power rates of Subic Enerzone Corp. (SEZ), the power-distribution arm of AboitizPower Corp. at the Subic Bay Free Port Zone, could eventually take place should the Energy Regulatory Commission (ERC) approve its performance-base regulation (PBR) rate petition.
Distribution utilities like SEZ are mandated to conform to the PBR regimen, which sets their maximum allowable revenue annually and also sets utilities’ capital projects for the year.
The SEZ is preparing to enter into the PBR regimen next year under the second regulatory period covering 2012 to 2015 and starts on October 1, 2011 and terminates on September 30, 2015.
In its application, the SEZ petitions to increase its current distribution charge to residential customers of P2.17 per kilowatt-hour (kWh) to P4.70/kWh, P4.72/kWh, P4.79/kWh, and P4.83/kWh in 2012, 2013, 2014, and 2015, respectively, the distribution charge to commercial customers of P1.15/kWh to P2.48/kWh, P2.49/kWh, P2.53/kWh and P2.55/kWh in 2012, 2013, 2014, and 2015, respectively.
Industrial customers, according to SEZ, will also see an increase in their current distribution charge of P0.74/kWh to P1.33/kWh, P1.34/kWh, P1.36/kWh, and P1.37/kWh in 2012, 2013, 2014, and 2015, respectively.
The increase in distribution charge supports its projected revenue requirements of P399.37 million, P414.66 million, P435.94 million, P455.23 million in 2012, 2013, 2014 and 2015, respectively.
These projected revenues will support its new capital expenditure required to meet growing energy demand, increase the number of customer, improvements in service quality and performance measurement, and the replacement of aging or obsolete equipment.

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