tag:blogger.com,1999:blog-17568419680022615242011-04-21T12:13:16.440-07:00News results my blogshttp://www.blogger.com/profile/04337346056425884782noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-1756841968002261524.post-4499254949010219032007-10-02T13:26:00.001-07:002007-10-02T13:26:58.480-07:00By Abigail L. Ho<br />Inquirer<br />Last updated 11:56pm (Mla time) 10/02/2007<br /><br /><br />MANILA, Philippines -- Residents in the franchise areas of the Manila Electric Co. will enjoy a 65-centavo per kilowatt-hour (kWh) reduction in their electricity bills this month due to the partial implementation of the mandated 30-centavos-per-kWh Power Act Reduction (PAR) and the decline in generation cost.<br /><br />Meralco president and chief operating officer Jesus Francisco said the National Power Corp. on Tuesday sent Meralco a credit memo worth P425.3 million, representing cumulative PAR from December 26, 2006, to July 25.<br /><br />Section 72 of RA 9136, or the Electric Power Industry Reform Act of 2001 (Epira), provides that residential end-users shall get a rate reduction of 30 centavos per kWh for power sourced from Napocor by power distributors.<br /><br />This particular rate reduction should be reflected as a separate line item on residential consumers’ monthly electricity bills.<br /><br />For 10 months now, however, this line item has not been present in Meralco’s billing statements.<br /><br />The rate reduction in the October billings will reach as much as 65 centavos per kWh as this includes the 54-centavos-per-kWh PAR-related reduction, the four-centavos-per-kWh generation cost-related cut, and the corresponding 12-percent value-added tax reduction.<br /><br />This means that residential customers consuming 100 kWh a month will see their bills go down by P65, while those using 200 kWh will pay P130 less.<br /><br />Following Meralco’s receipt of the credit memo, however, Francisco said it could now pass on a reduction of 54 centavos per kWh, with more PAR-related cuts to follow in the future.<br /><br />The P425.3 million covered only seven months’ worth of PAR, he said, so there should still be another three months’ worth of discounts that Napocor could pass on to Meralco which in turn could pass on to its residential customers.<br /><br />This could amount to around 10 centavos per kWh for each of the three remaining months, he said.<br /><br />He said the PAR should be reflected on bills every month.<br /><br />“We hope they will now give us the mandated rate reduction faithfully, especially now that we have started with this accumulated (amount). We hope this will push through,” he said.<br /><br />Apart from the PAR-related cut, he said Meralco’s residential customers would also enjoy another four-centavos-per-kWh reduction as a result of improved dispatch of the distribution utility’s independent power producers and the stronger peso.<br /><br />Average rate from the IPPs went down to P4.01 per kWh in September from P4.27 per kWh in August, and the cost of power sourced from Napocor was also 21.4 centavos lower at P4.90 per kWh.<br /><br />Although cost of power sourced from the wholesale electricity spot market was higher by P1.64 per kWh last month, its effect was not that big since Meralco sourced only 12 percent of its supply requirements from the electricity bourse.<br /><br />The bulk of its supply, or 52 percent, came from IPPs First Gas Power Corp.’s 1,000-MW Sta. Rita and 500-MW San Lorenzo and Quezon Power Philippines Ltd. The 36-percent balance came from Napocor.<br /> <br /><br /><br />Copyright 2007 Inquirer. 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