ERC Orders NPC to Refund Customers P0.04/kWh for Gains in Foreign Exchange

Article excerpt

MANILA, Philippines - Luzon electricity consumers can only expect a minimal reduction of P0.04 per kilowatt hour (kWh) from the foreign exchange refund ordered on National Power Corporation (NPC), the Energy Regulatory Commission (ERC) has clarified.

While the forex gain reduction approved was at P0.34 per kilowatt hour (kWh), this has to be offset from the last adjustment of P0.31 per kWh which has lapsed in November billing cycle.

"The overall reduction in the forex component on NPC charges will just be P0.04 per kWh because that has to be reckoned with its time-of-use (TOU) which was set to even out from the last currency exchange rate adjustment," ERC executive director Francis Saturnino Juan has noted.

The foreign exchange gains logged by state-run NPC has merited an order from the regulatory body for it to refund P6.6 billion worth of over-collections to Luzon customers. This could have translated to P0.34 per kWh if without the offsetting mechanism.

Visayas and Mindanao consumers will similarly benefit from the rate decline.

Mindanao will enjoy a reduction of P0. …