CONSUMERS will get a relief from paying high power rates, as the Energy Regulatory Commission (ERC) said Tuesday it expects the National Power Corp. (Napocor) to charge lower rates to consumers in the coming months based on the ERC-approved Time-of-Use (TOU) rates of the said power company.  

“This lower rate has already been recently approved by the ERC in its decision in Case No. 2004-178 regarding the Time-of-Use (TOU) rate scheme,” ERC chairman Rodolfo B. Albano, Jr. said.

The TOU scheme approximates the true cost of electricity at different times of the day. It also considers the seasonal differences between the periods January to June and July to December.

Electricity users generally pay lower rates during off-peak hours.  

The onset of the rainy season further provides an opportunity for lower generation rates when the NPC increases the use of its hydroelectric plants that are less costly to operate.  

“TOU provides a means for efficient utilization of electricity with the benefit of lower rates for end-users. The ERC continually looks for ways and means to provide electricity consumers with quality, safe and adequate electricity service at a reasonable price,” Albano added.

Napocor earlier announced that the rainy season is expected to push its generation charge lower.

“We see a reduction of 35 centavos a kilowatt-hour in the generation charge we collect from our customers due to the rains to come in the next few months. Historically, power rates usually come down starting in July until December owing to the lower demand and the availability of the hydroelectric plants,” said Napocor president Cyril C. del Callar.

He added that consumers could expect prices to go down starting end-June. “It has been a regular thing since September 2004 or since the inception of the Time-of-Use [TOU] rates,” he added.

According to Napocor data furnished to reporters, the TOU rates go up to an average of P4.0753 a kilowatt-hour from January to June in Luzon and down to an average of P3.7241 a kilowatt-hour from July to December resulting in a seasonal difference of 35.12 centavos a kilowatt-hour.

Mindanao, which depends on hydroelectric plants, has a seasonal price difference of 47.90 centavos a kilowatt-hour to P2.4480 a kilowatt-hour for January to June compared with P1.9690 a kilowatt-hour for the latter months of the year.

“However, this positive development still depends on the rates the ERC will approve. Nevertheless, power rates are still expected to be reduced in the next few months, particularly when the regulatory body decides on the pending petition for our deferred accounting adjustment [DAA] under the Generation Rate Adjustment Mechanism [Gram] and the Incremental Currency Exchange Rate Adjustment [Icera],” he said.

“We have already petitioned for a new rate adjustments with the ERC under its 8th Gram and 7th Icera adjustments last month. And it [petitions] will reflect the rate reduction under the Gram of between eight and 10 centavos, if approved by the ERC,” he added.

Del Callar pointed out that further power rate reductions could be attributed to the strengthening of the peso against major foreign currencies since in February to June last year, particularly the periods covered by the 8th Gram and 7th Icera petitions and when Napocor had also boosted its efforts to reduce the use of oil-based power plants.

Del Callar added that Napocor customers are also protected from high prices at the Wholesale Electricity Spot Market (WESM). “Napocor is not exposed to the volatilities at the market, as most of our power output are covered by bilateral contracts and they normally trade only 10 percent  to 15 percent of its capacity,” del Callar said.

“Contracted customers have continuously enjoyed stable prices [through the TOU rates] that are ERC-approved and possibly the cheapest in the industry today,” said the Napocor official.

Del Callar also said he welcomes moves by the ERC to investigate certain officials of Napocor for alleged “anticompetitive” behavior that may have led to the rise in electricity prices at the WESM.

The WESM earlier revealed that its prices have soared by P2 a kilowatt-hour to an estimated settlement price of P8 a kilowatt-hour for the month of April from P5.936 a kilowatt-hour in March due to the low use of power plants running on cheaper fuel like coal and hydro.

Fortunately, the consumers and customers of the Manila Electric Co. are estimated to pay cheaper by P0.50 a kilowatt-hour.

CONSUMERS will get a relief from paying high power rates, as the Energy Regulatory Commission (ERC) said Tuesday it expects the National Power Corp. (Napocor) to charge lower rates to consumers in the coming months based on the ERC-approved Time-of-Use (TOU) rates of the said power company.  

ENVIRONMENT and Natural Resources Secretary Angelo Reyes announced Tuesday the grant of 11 mineral agreements and exploration permits that will bring in at least P224.7 million in new mining investments in the Philippines in the next two years.

MAJOR stakeholders in the World Trade Organization (WTO), both from government trade negotiators and civil society groups, have aired their concerns on the threats of the multilateral trading system ranging from the widening gap between urban and rural people to loss of jobs especially to women in the garments sector.

PRESIDENT Arroyo’s two-day visit to Portugal is expected to generate more trade and investment opportunities for the Philippines, Malacañang said Tuesday.

THE government will bid out in three months up to 15 of the 65 mining tenements previously owned by several groups but have been declared nonperforming by the Department of Environment and Natural Resources.