Tuesday, July 12, 2011

Energy commission cuts power firm's rate hike request



Tuesday, July 12, 2011

THE Energy Regulatory Commission (ERC) issued a decision to slash out 30 centavos per kilowatt hour of the power rate adjustment earlier requested by the Cagayan Electric Power and Light Company (Cepalco) in Cagayan de Oro City.

City Councilor President Elipe said on Tuesday Cepalco is no longer contesting the ERC decision.
Cepalco earlier proposed for an increase of as much as 14 percent before the ERC but in its computation, the increase has to be slashed out by at least 30 centavos per kilowatt hour.

"I don't know the exact amount of this 14 percent but we should be thankful to ERC for its decision," Elipe said.

However, Elipe said the transmission charge will increase by 39 centavos, thus the 30 centavos decrease will still not be felt.

"Our electric bill doesn't talk only about Cepalco but also Napocor (National Power Corporation), Transco (National Grid Corporation of the Philippines) and other entities," Elipe said.

With the ERC decision, Elipe has recommended the termination of the ad hoc committee that was earlier created for this purpose. He chairs the said committee.

For his part, City Councilor Edgar Cabanlas lauded Elipe for the good result but expressed apprehension on some observations that electric bills are still increasing.

"The explanation is too technical and general that even me could not understand, how much more the general public? They should explain it per item so that the increase and decrease will be clear to everyone," Cabanlas said.

With the increasing utility bills, Elipe said a "continuing body" is needed to probe not only the application of Cepalco but also on water rates.

Published in the Sun.Star Cagayan de Oro newspaper on July 13, 2011.

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