Power consumers to enjoy P0.30 reduction in rate

CEBU, Philippines - The Energy Regulatory Commission clarified that the Mandatory Rate Reduction of P0.30 per kilowatt hour granted under Section 72 of the Electric Power Industry Reform Act of 2001 shall continue to be enjoyed by customers even if their distribution utilities are sourcing their power from Successor Generating Companies or those buyers of National Power Corporation plants under Transition Supply Contracts assigned and transferred to these generating companies.

Section 72 of EPIRA provides that upon effectivity of the said law, residential end-users shall be granted a rate reduction from NPC rates of P0.30/kWh.

The ERC in their Resolution No. 13, Series of 2009 stated that the cost of implementing the MRR for the duration of the term of the assigned TSC shall be borne by NPC and/or the Power Sector Assets and Liabilities Management Corporation.

The said ERC Resolution is an offshoot to the petition filed by Masinloc Power Partners Co., Ltd. to initiate rule making in relation to ERC Resolution No. 16, Series of 2008 specifically on the issue of the MRR.

Transition Supply Contracts (TSCs) are supply agreements between NPC and its DU customers mandated by the EPIRA, which can be assigned to buyers of NPC plants or the SGCs.

The resolution further stated that the SGC may assume this obligation after presenting a written instrument.

On the other hand, in cases where an SGC shall continue to supply the requirements of the affected distribution utility under an extension as allowed by the ERC of the assigned TSC’s term, the obligation to provide the MRR shall cease, unless otherwise stipulated upon by the SGC and the affected DU.

In that case, the resolution further said that the cost of implementing the MRR shall be borne by the SGC. — Mitchelle L. Palaubsanon/BRP (THE FREEMAN)