With Napocor rate hike, electricity to cost more

Published by rudy Date posted on February 20, 2009

Electricity rates across the country are poised to go up after the Energy Regulatory Commission (ERC) approved a petition from state-owned National Power Corp. (Napocor) for an increase in its basic generation rates.

In a 27-page decision, the regulator gave the green light to the power-generating company to increase its rates in Luzon by P0.47 per kilowatt-hour; in the Visayas by P1.15 per kilowatt-hour; and in Mindanao by P0.72 per kilowatt-hour.

The adjustments, which are to take effect next month, will jack up the rates in the Luzon, Visayas and Mindanao grids to P4.37 per kilowatt-hour, P4.03 per kilowatt-hour and P2.82 per kilowatt-hour, respectively.

The commission said it allowed Napocor to provisionally increase its rates to give it relief from its “current financial difficulties given its current costs of generating power, including the costs of the discounts that it is mandated to extend to certain customers.”

Francis Saturnino Juan, the regulator’s executive director, said, “The ERC’s mandate is to set the rates at such level that will allow recovery of just and reasonable costs in the provision of the service and a reasonable return on the capital employed in the business subject to regulation. The ERC cannot shirk this responsibility if it becomes difficult and unpopular to do so.”

The rate increase would give Napocor more than P100 million in additional revenues.

Napocor reported that it needed the rate increase because it is now forced to use to fossil-fuel powered plants that are more expensive to operate, since cheaper facilities—like hydroelectric plants—have been privatized by the government. Napocor added that it is spending more for electricity generated by independent power producers.

Rates could have been higher

In approving Napocor’s adjusted rate hike, however, the regulator did not give the full amount it had asked for.

In its joint application with the state-run privatization unit the Power Sector Assets and Liabilities Management Corp. (PSALM), Napocor had asked for an increase in its basic generation rate of about P0.83 per kilowatt-hour in the Luzon grid, P1.38 per kilowatt-hour for the Visayas grid, and P1.07 per kilowatt-hour for the Mindanao grid.

The proposed increase by Napocor would have pegged its time-of-use rates in Luzon at P4.73 per kilowatt-hour; Visayas, P4.27 per kilowatt-hour; and Mindanao, P3.17 per kilowatt-hour.

Napocor added that the provisional rates could change, depending on the outcome of the hearings to be conducted on its rate application.

If it turns out in the final evaluation of the Energy Regulatory Commission that Napocor and PSALM are not entitled to the adjustments that were provisionally authorized, then they are obligated to refund any excess in recoveries.

The increase stands to affect the power rates of 263 electric utilities and organizations across the country that are directly sourcing their power requirements from Napocor.

One of those direct buyers is the giant utility Manila Electric Co. (Meralco), whose rates will go up by P0.17 per kilowatt-hour starting April.

Officials from the country’s largest electricity distribution company said the net effect of the adjustments was lower for Meralco, because it only sourced 36 percent of its power requirements from Napocor in January. –Euan Paulo C. Añonuevo, Reporter, Manila Times

July 2025

Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”

Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.

Accept National Unity Government (NUG)
of Myanmar.  Reject Military!

#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

July


3 July – International Day of Cooperatives
3 Ju
ly – International Plastic Bag Free Day
 
5 July –
World Youth Skills Day 
7 July – Global Forgiveness Day
11 July – World Population Day 
17 July – World Day for
International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons 


Monthly Observances:

Schools Safety Month

Nutrition Month
National Disaster Consciousness Month

Weekly Observances:

Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week

 

Daily Observances:

First Saturday of July:
International Cooperative Day
in the Philippines

Categories

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.