Napocor gets clearance for unbundled rate scheme

The five-man board of the Energy Regulatory Commission (ERC) has approved the grant of a provisional authority that will allow National Power Corp. (Napocor) to implement its unbundled power rate scheme.

Napocor tariff manager Edgardo Orencia said the ERC gave them the go signal to use the new unbundled rate two weeks ago. The state-run power giant filed its application of revised rate unbundling scheme with ERC last September. But, Orencia said that before they could implement the new power rate scheme, the ERC wants Napocor to complete the installation of the power firm’s electronic metering device.

"We need to comply with the electronic metering requirement before the ERC could allow us to use the new rate unbundling scheme," Orencia said.

The Napocor official said the new metering equipment would allow the ERC to effectively monitor and determine the exact power usage of Napocor customers based on the peak and off-peak periods.

"All of our customers would be charged uniformly. We expect to forward our request to the ERC as soon as possible," he said.

Napocor’s rate unbundling scheme will allow it to segregate or itemize in its billings the types of charges the company is imposing. This unbundled billing would show a more transparent pricing, indicating the generation charge, system benefit charge, auxiliary service charge, power delivery service charge and customer charge.

About 80 percent of the power users in Metro Manila have metering device. Most of these are in the franchise areas of Lopez-owned Manila Electric Co. (Meralco), the biggest customer of Napocor.

Orencia noted that the new rate unbundling scheme of Napocor would be "revenue neutral."

He said they have abandoned their plan to increase rates by 21 centavos per kilowatthour, based on its previous rate application to then Energy Regulatory Board (ERB).

"The new petition of Napocor is revenue neutral," he said, adding that the power company had already presented the application that did not carry the rate adjustment.