NAPOCOR, Psalm seek increase Power rate hike looms in Visayas

CEBU, Philippines - National Power Corporation and the Power Sector Assets and Liabilities Management Corporation are asking the Energy Regulatory Commission (ERC) to increase the generation rate, which would translate into a power rate hike if granted.

Napocor and PSALM are asking the ERC to allow them to charge P4.2694 per kilowatt hour (kwh) from the present P3.7255/kwh.

The current price was granted by the ERC last February 16, 2009 and later modified on March 23, 2009. It was first reflected in the March 2009 electricity bills of the consumers.

During the hearing of the application for increase yesterday at the ERC-Regional Office, the Freedom from Debt Coalition, as an oppositor-intervenor said that they wanted the Commission to entirely scrap the proposed P4.2694/kwh rate adjustment.

ERC-VII regional director Joel Bontuyan after the cross-examination of the witness directed Napocor and PSALM to file their formal offer of evidence to justify their proposed increase ten days from yesterday while consumer groups were directed to file their answer or comment, 15 days after receipt of the formal offer.

“It is extremely necessary to allow the implementation of the proposed adjustment in the basic generation charge in order to immediately alleviate Napocor’s current financial difficulties,” the petition reads.

The ERC in its February 8, 2010 Order stated that in event the final rate is higher than what was provisionally granted, the resulting additional charges shall be collected by Napocor and PSALM from the customers.

It added that if the final rate is lower than what is provisionally granted, the amount corresponding to the reduction shall be refunded by Napocor and PSALM to its customers.

It has been more than two years since the application was filed and Bontuyan said it took this long for the ERC to decide as the previous hearings were suspended due to some prejudicial questions raised by some oppositors on the petition.

Cebu-based Visayan Electric Company, Inc. earlier filed a motion to intervene contending that the company sources about 75 percent of its power requirement from Napocor and that any increase in Napocor rate will directly affect their customers since generation cost is a pass-through cost. –/NLQ (FREEMAN)