Manila Times.net
Published : Monday, August 01, 2011 00:00 Written by :
THE Energy Regulatory Commission (ERC) has approved an increase in the power rates in Cebu, Davao and La Union in line with their respective distribution utilities’ performance-based regulation.
In a decision, the regulator said it approved a P1.30 per kilowatt-hour maximum average price for the distribution rates of Visayan Electric Company Inc. for regulatory year July 1, 2011 to June 30, 2012.
The approved rate is an increase from the utility’s P1.17 per kilowatt-hour MAP.
In a separate decision, the ERC approved a P1.27 per kilowatt-hour MAP for Davao Light and Power Company Inc. over the same period, an increase from its previous distribution rate of P1.16 per kilowatt-hour.
The ERC also allowed La Union Electric Co. Inc. to adjust its MAP to P1.39 per kilowatt-hour from P1.23 per kilowatt-hour previously.
The ERC’s nod to the utilities’ new MAP allows them to translate or define their approved price into different tariffs for their customer classes such as residential, commercial, industrial and government/street lights.
VECO, DLPC and Lueco distribute electricity to major growth centers in the provinces of Cebu, Davao and La Union.
The increase in their distribution rates, or the line item in consumers’ electricity bills that go directly to the utilities’ pockets, is in accordance with their shift to PBR.
The PBR is a rate-setting scheme prescribed by the ERC wherein utilities’ rates are subject to yearly adjustments based on performance, efficiency, capital spending requirements, inflation, foreign currency exchange fluctuation and previous year’s under recoveries.
“The PBR puts pressure on the utilities to incorporate operational efficiencies through the guaranteed service level and performance incentive schemes systems so that long-term consumer interests such as quality service and a stable supply of electricity are promoted,” Zenaida Cruz-Ducut, ERC chairman, said.
VECO, DLPC and LUECO’s price hikes form part of the second regulatory year for their respective PBR’s 2011 to 2014 regulatory period. nd regulatory year for their respective PBR’s 2011 to 2014 regulatory period.
In a decision, the regulator said it approved a P1.30 per kilowatt-hour maximum average price for the distribution rates of Visayan Electric Company Inc. for regulatory year July 1, 2011 to June 30, 2012.
The approved rate is an increase from the utility’s P1.17 per kilowatt-hour MAP.
In a separate decision, the ERC approved a P1.27 per kilowatt-hour MAP for Davao Light and Power Company Inc. over the same period, an increase from its previous distribution rate of P1.16 per kilowatt-hour.
The ERC also allowed La Union Electric Co. Inc. to adjust its MAP to P1.39 per kilowatt-hour from P1.23 per kilowatt-hour previously.
The ERC’s nod to the utilities’ new MAP allows them to translate or define their approved price into different tariffs for their customer classes such as residential, commercial, industrial and government/street lights.
VECO, DLPC and Lueco distribute electricity to major growth centers in the provinces of Cebu, Davao and La Union.
The increase in their distribution rates, or the line item in consumers’ electricity bills that go directly to the utilities’ pockets, is in accordance with their shift to PBR.
The PBR is a rate-setting scheme prescribed by the ERC wherein utilities’ rates are subject to yearly adjustments based on performance, efficiency, capital spending requirements, inflation, foreign currency exchange fluctuation and previous year’s under recoveries.
“The PBR puts pressure on the utilities to incorporate operational efficiencies through the guaranteed service level and performance incentive schemes systems so that long-term consumer interests such as quality service and a stable supply of electricity are promoted,” Zenaida Cruz-Ducut, ERC chairman, said.
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