| By Donnabelle Gatdula (The Philippine Star) Updated December 03, 2010 12:00 AM |
MANILA, Philippines - Luzon-based customers of the state-run National Power Corp. (Napocor) will enjoy a reduction of 34 centavos per kilowatt-hour (kwh) in their power rates in the next nine months.
The Energy Regulatory Commission (ERC), in a decision, said the cut in Napocor’s rates was an offshoot of lower foreign currency exchange costs.
Aside from Luzon, the commission also ordered Napocor to lower its rates in Mindanao by 26 centavos per kwh for the next nine months.
In the Visayas, the ERC has allowed Napocor to increase its rate by nine centavos for the next 20 months.
These rate adjustments were part of the joint applications filed by Napocor and the Power Sector Assets and Liabilities Management Corp. (PSALM), the state agency tasked to manage the former’s books, for the recovery or refund of foreign currency exchange rate fluctuations incurred by the power company from its debt servicing and operations.
Upon approval of the ERC, power generation companies like Napocor could adjust their rates based on an incremental currency exchange rate adjustment (ICERA) cost recovery mechanism.
Earlier, Napocor and PSALM applied with the ERC for its ninth to 14th ICERA adjustments for forex related costs from January 2007 to June 2009.
“The applications seek to obtain the approval for the recovery/(refund) of the total deferred forex fluctuation costs and the balance of previously approved ICERA [deferred accounting adjustments],” the ERC said.
Based on the ERC’s computations, Napocor needed to refund forex over collections of P6.58 billion for Luzon and P1.71 billion for Mindanao; and to collect P800.51 million in the Visayas as of June 2009.
Napocor officials were not available for comment as of press time.
The Energy Regulatory Commission (ERC), in a decision, said the cut in Napocor’s rates was an offshoot of lower foreign currency exchange costs.
Aside from Luzon, the commission also ordered Napocor to lower its rates in Mindanao by 26 centavos per kwh for the next nine months.
In the Visayas, the ERC has allowed Napocor to increase its rate by nine centavos for the next 20 months.
These rate adjustments were part of the joint applications filed by Napocor and the Power Sector Assets and Liabilities Management Corp. (PSALM), the state agency tasked to manage the former’s books, for the recovery or refund of foreign currency exchange rate fluctuations incurred by the power company from its debt servicing and operations.
Upon approval of the ERC, power generation companies like Napocor could adjust their rates based on an incremental currency exchange rate adjustment (ICERA) cost recovery mechanism.
Earlier, Napocor and PSALM applied with the ERC for its ninth to 14th ICERA adjustments for forex related costs from January 2007 to June 2009.
“The applications seek to obtain the approval for the recovery/(refund) of the total deferred forex fluctuation costs and the balance of previously approved ICERA [deferred accounting adjustments],” the ERC said.
Based on the ERC’s computations, Napocor needed to refund forex over collections of P6.58 billion for Luzon and P1.71 billion for Mindanao; and to collect P800.51 million in the Visayas as of June 2009.
Napocor officials were not available for comment as of press time.
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