Business World Online
Posted on September 12, 2012 10:09:07 PM
ELECTRICITY consumers in Mindanao can expect a decrease in power rates as Aboitiz Power Corp. will refund to National Power Grid Corp. of the Philippines (NGCP) the recovery fees it incurred in 2010 and 2011 as directed by the Energy Regulatory Commission (ERC).
In a ruling dated Aug. 14, the ERC reduced the Capital Recovery Fee of PB 117 and PB 118 in the Ancillary Service Purchase Agreement of AboitizPower’s wholly owned subsidiary Therma Marine, Inc. (TMI) with the NGCP.
The ERC, in its order, reduced TMI’s capital recovery cost for PB 117 from P0.7768 per kilowatt-hour (kWh) to P0.5564/kWh in 2010, P0.5302/kWh for 2011 and decreased recovery cost for PB 118 from P0.7768/kWh to P0.5150/kWh in 2010, P0.4912/kWh in 2011.
TMI will submit to ERC the actual refund amount for approval and after approval, TMI will then refund NGCP, which is expected to take four to six months.
The adjustment ordered by ERC will only impact the capital recovery fee portion of the ancillary power supplied by TMI to NGCP, which will apply the refund to the bills of electric cooperatives and distribution utilities, which in turn are expected to pass the benefit to the end consumer.
Ancillary services refer to power supplier-driven services that are necessary to support the transmission of electricity from power resources to load customers and to maintain the reliability of power services.
Earlier this week, Zamboanga Chamber of Commerce and Foundation, Inc. welcomed the decision of the ERC directing NGCP to recover the P100-million ancillary services procurement agreement rates to its consumers in Mindanao.
The Mindanao Grid, which heavily depends on the Agus-Pulangui hydropower plants as its main source of electricity, continues to be in critical condition due to inadequate supply and the situation is seen to continue until new power plants come online by 2015. At present, TMI supplies its power to 23 electric cooperatives and distribution utilities, resulting in minimal or zero brownouts in some areas of Mindanao, which used to experience brownouts lasting up to 10 hours a day. -- Danessa O. Rivera source
The ERC, in its order, reduced TMI’s capital recovery cost for PB 117 from P0.7768 per kilowatt-hour (kWh) to P0.5564/kWh in 2010, P0.5302/kWh for 2011 and decreased recovery cost for PB 118 from P0.7768/kWh to P0.5150/kWh in 2010, P0.4912/kWh in 2011.
TMI will submit to ERC the actual refund amount for approval and after approval, TMI will then refund NGCP, which is expected to take four to six months.
The adjustment ordered by ERC will only impact the capital recovery fee portion of the ancillary power supplied by TMI to NGCP, which will apply the refund to the bills of electric cooperatives and distribution utilities, which in turn are expected to pass the benefit to the end consumer.
Ancillary services refer to power supplier-driven services that are necessary to support the transmission of electricity from power resources to load customers and to maintain the reliability of power services.
Earlier this week, Zamboanga Chamber of Commerce and Foundation, Inc. welcomed the decision of the ERC directing NGCP to recover the P100-million ancillary services procurement agreement rates to its consumers in Mindanao.
The Mindanao Grid, which heavily depends on the Agus-Pulangui hydropower plants as its main source of electricity, continues to be in critical condition due to inadequate supply and the situation is seen to continue until new power plants come online by 2015. At present, TMI supplies its power to 23 electric cooperatives and distribution utilities, resulting in minimal or zero brownouts in some areas of Mindanao, which used to experience brownouts lasting up to 10 hours a day. -- Danessa O. Rivera source
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