Business World
Posted on January 24, 2011 10:48:20 PM
AREAS in 31 provinces that are not connected to the main grid could see their electricity bills rise.
This, as the National Power Corp.-Small Power Utilities Group (Napocor-SPUG) has filed with the Energy Regulatory Commission (ERC) for such increase under the Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Adjustment (ICERA) system. The increase consists of pass-on charges, reflecting changes in power generation and foreign exchange costs, covering the period Dec. 26, 2008 to Dec. 25, 2009.
In its filing dated Jan. 14, Napocor asked for an increase of P1.3163 per kilowatt-hour (kWh) under GRAM and P0.1982/kWh under ICERA to be charged to end-users in SPUG areas.
Provinces affected by the increase are Mindoro, Batangas, Marinduque, Quezon, Palawan, Catanduanes, Albay, Romblon, Batanes, Cagayan, Aurora, Apayao, Kalinga, Isabela, Camarines Sur, Masbate, Cebu, Siquijor, Antique, Iloilo, Leyte, Biliran, Samar, Basilan, Sulu, Dinagat, Sultan Kudarat, Davao, Surigao del Norte, Zamboanga and Tawi-Tawi.
Napocor said the P1.3163/kWh increase under GRAM is based on deferred costs of P2.1 billion which the state firm needs to recover. Bulk of the amount consists of fuel costs used to generate electricity in the SPUG areas that totaled P2.06 billion. ICERA consisted of foreign exchange costs totaling P153.9 million.
ERC executive director Francis Saturnino C. Juan said in a phone interview that the GRAM and ICERA filings are not part of discussions on the Universal Charge for Missionary Electrification.
"There is a separate system for the off-grid areas which is subsidized. The GRAM and ICERA for SPUG areas is different from the universal charge which was already resolved by the commission," said Mr. Juan, referring to ERC’s approval in September last year of a P0.0454/kWh "missionary" subsidy charged to users in the main grid, compared to the P0.23/kWh Napocor had sought. -- E. N. J. David
In its filing dated Jan. 14, Napocor asked for an increase of P1.3163 per kilowatt-hour (kWh) under GRAM and P0.1982/kWh under ICERA to be charged to end-users in SPUG areas.
Provinces affected by the increase are Mindoro, Batangas, Marinduque, Quezon, Palawan, Catanduanes, Albay, Romblon, Batanes, Cagayan, Aurora, Apayao, Kalinga, Isabela, Camarines Sur, Masbate, Cebu, Siquijor, Antique, Iloilo, Leyte, Biliran, Samar, Basilan, Sulu, Dinagat, Sultan Kudarat, Davao, Surigao del Norte, Zamboanga and Tawi-Tawi.
Napocor said the P1.3163/kWh increase under GRAM is based on deferred costs of P2.1 billion which the state firm needs to recover. Bulk of the amount consists of fuel costs used to generate electricity in the SPUG areas that totaled P2.06 billion. ICERA consisted of foreign exchange costs totaling P153.9 million.
ERC executive director Francis Saturnino C. Juan said in a phone interview that the GRAM and ICERA filings are not part of discussions on the Universal Charge for Missionary Electrification.
"There is a separate system for the off-grid areas which is subsidized. The GRAM and ICERA for SPUG areas is different from the universal charge which was already resolved by the commission," said Mr. Juan, referring to ERC’s approval in September last year of a P0.0454/kWh "missionary" subsidy charged to users in the main grid, compared to the P0.23/kWh Napocor had sought. -- E. N. J. David
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