The National Power Corp. (Napocor) will still pursue its application for a 37-centavo per kilowatthour (kwh) basic rate adjustment, according to its new president.
Napocor president Froilan A. Tampinco, in his first press conference since assuming his new post, said the rate adjustment was necessary in order to be able to bring the tariff attuned to the actual conditions of the industry.
Tampinco assumed the position of Napocor president in lieu of Cyril del Callar, who resigned last month.
The 37-centavo per kwh basic rate adjustment was filed with the Energy Regulatory Commission (ERC) last July. It is differentiated with the filings for the deferred accounting adjustments (GRAM and ICERA).
“We’re just trying to keep the filings current, as we are really expected to make filings every quarter. And we’re just correcting it, since we were delayed for some time,” he said.
But for the basic rate adjustment, Napocor has to make it current because the last increase was in 2004.
The biggest components for a power rate increase are fuel costs and the foreign exchange. Oil prices have not stalled in its downward trend over the past two weeks. However, the peso remains weak against the dollar.
Even the private sector had expressed concern over delays in the approval of the rate hike adjustments sought by Napocor.
First Gas Corp. president Federico Lopez recommended that the ERC should not just approve portions of the rate adjustment.
Lopez said that it sometimes takes 18 months before a rate adjustmentis addressed by the ERC.
“Napocor’s applications suffer lags, ERC should approve it one blow, and not do it in tranches. That way, they can bring their rates up to par so that it’s reflective of true cost – true cost in terms of the cost items and time,” Lopez said.