CEBU electricity consumers may soon see the end of their low much talked-about low power rates.

Aboitiz Power Corp. (APC) said it will apply for a rate reset under the performance-based regulation (PBR) of the Energy Regulatory Commission (ERC) for their distribution companies, effectively increasing their power rates by 2010.

APC chief executive Erramon Aboitiz said the recomputation is long overdue since the current rate base for Aboitiz-owned distribution utilities still uses the Year 2000-level.

“There will be an adjustment, which could take effect by 2010 because these [negotiations] could take at least a year,” Aboitiz said.

He said the new rates will reflect the real-capital expenditures of the utilities which, he said, have been affected by prices of materials and equipment, investment costs, among others.

“The price of steel so expensive and we need steel for electricity poles. I think that will be publicly justifiable.”

“We believe the PBR will benefit efficient distribution utilities like ours. We too are confident that our distribution rates will be adjusted considering that our current rates are based on assets and expenses of the year 2000,” Aboitiz pointed out.

APC controls the Visayan Electric Co. (Veco)—the second-biggest power utility in the country; Davao Light and Power Inc., Cotabato Light and Power Co., and the San Fernando Electric Light and Power Co. It also owns power distribution firms in key economic zones in Mactan, Cebu; Subic, Olongapo; and Balamban, Cebu.

The APC executive said although their utilities purchase power from Aboitiz-owned generators, the transactions undergo bidding and are transparent.

He highlighted Cebu Private Power Corp. in Cebu City, which operates a 70-megawatt (MW) plant exclusive for Veco, which offers the “best” electricity cost, compared with similar plants. “I am confident we will be cheaper compared with other plants,” he said.

Sister-company, Cotabato Light, enjoyed the lowest rate per kilowatt-hour (kWh) at P2.52, followed by Davao Light’s P2.96, and Subic’s P3.52, and P3.55 of Veco. Manila Electric Co. sells its power at P4.81 per kWh

Aboitiz Power posted a P4.1-billion net income in 2007 beefed up by the solid performance of its power-generation units.

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CEBU electricity consumers may soon see the end of their low much talked-about low power rates.

Aboitiz Power Corp. (APC) said it will apply for a rate reset under the performance-based regulation (PBR) of the Energy Regulatory Commission (ERC) for their distribution companies, effectively increasing their power rates by 2010.

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