ERC orders Napocor to lower power rates in Luzon

Power consumers in Luzon will see lower electric rates of P0.34 per kilowatt hour (kWh) in the next nine months due to effects of foreign currency exchange costs on the National Power Corp.'s (Napocor) rates. In a ruling, the Energy Regulatory Commission (ERC) ordered Napocor to slash its Luzon rates starting the Nov. 26 to Dec. 25 billing period. ERC likewise ordered Napocor to lower its power rates in Mindanao by P0.26 per kWh in the next nine months until the state-run firm refunds its foreign exchange cost savings from its debt servicing operations. However, ERC allowed Napocor to raise its rates in the Visayas by P0.09 per kWh for 20 months. The ERC rules explain the mechanism for recovery or refund of the deferred increment costs (savings) on foreign curreny exchange rate fluctuations and carrying charges. Napocor produces electricity to supply the power requirements of industrial customers and electricity distribution utilities in the country. Napocor is no longer allowed to build power generation projects under the Electric Power Industry Reform Act of 2001. -- JE/OMG, GMANews.TV