La Union power firm raises rates due to EVAT

SAN FERNANDO CITY, La Union — The La Union Electric Company (LUECO), a private power firm based in this city, is set to increase its rates by 60 centavos per kilowatt-hour (kwh) due to the implementation of the expanded value-added tax (EVAT).

Jerry Parlan, LUECO operations officer, told The STAR that they are only waiting for the guidelines from the Energy Regulatory Commission before they start implementing the rate increase.

"We are still waiting for the guidelines because we need to be cleared first (about the EVAT implementation) before we increase our rates," he said.

Parlan said they are expected to implement a 10 percent from the LUECO’s existing rate of P6 per kwh if the Bureau of Internal Revenue would ask for a 10 percent additional tax.

He cannot say though if the rate increase would be retroactive Nov. 1 or since the start of the implementation of EVAT.

Bernardo Valero, LUECO general manager and incumbent vice mayor of this city, confirmed the rate increase in a radio program here but clarified that the hike did not come from LUECO but they are merely obeying the government’s implementation of the EVAT.

"LUECO is being used only as collector of the EVAT, which would be remitted to the government (through the BIR)," he said.

LUECO supplies power to at least 30,000 consumers in this city and in the neighboring towns of Bauang and San Juan. It charges the lowest electricity rates among power firms in Luzon and in fact charges a much cheaper rate compated to the P10 per kwh being charged by the Manila Electric Co. (Meralco).