Napocor wants to hike power rates

MANILA, Philippines - National Power Corp. (Napocor) has applied for higher power rates nationwide to recover costs from more expensive fuel and a weaker peso. The state-owned power generator wants a 74.56-centavo per kilowatt-hour (kWh) increase for Luzon customers, 81.14 centavos for the Visayas, and 15.9 centavos for Mindanao. In another application, also submitted to the Energy Regulatory Commission (ERC), Napocor sought an additional 17.22-centavo/kWh adjustment for Luzon, 0.23-centavo for the Visayas and 4.03 centavos for Mindanao. "The proposed [generation rate and foreign exchange adjustments] are fair and reasonable as it allows the recovery of deferred costs consistent with the principles of a free and competitive electricity market," the company told regulators. The law allows Napocor to recover from or refund its customers costs or savings from fuel and purchased power prices, and foreign exchange movements. ERC Executive Director Francis Saturnino C. Juan said the commission would evaluate the Napocor petition, and would take into account an earlier decision for a 56-centavo/kWh cut. On Monday, the ERC said Luzon consumers would have to pay as much as 18 centavos/kWh more starting January after it allowed the Napocor to partially recover costs. Consumers were supposed to bear more with the expiration of the Napocor’s 74-centavo generation rate cut this month but the final adjustment will be lower as the ERC ordered the 56-centavo/kWh cut. Power distributor Manila Electric Co. (Meralco) has said the impact on their customers would be an increase of 18 centavos/kWh for those in economic zones. Other customers will have to pay more depending on the volume of power Meralco buys from Napocor. Aside from approving a 56-centavo/kWh cut, the ERC also junked Napocor’s petition to adjust its basic generation charge for Luzon by 36.85 centavos/kWh to P4.2651/kWh from P3.8966/kWh. The ERC, in rejecting the plea, noted that Napocor’s application was based on 2002 and 2004 figures and did not reflect current costs. — A. K. K. Austria, BusinessWorld