Two Power Firms Seeking Increase in Power Rates
The mulled adjustment in power rates would mean a possible increase in the distribution charges included in monthly electric bills, which is imposed on consumers, said APC president and chief executive officer Erramon Aboitiz at a press conference Monday following the first annual stockholders' meeting of the APC.
"We have higher expenses. Salaries have gone up. Cost of operations has gone up. Capital expenditures and prices of materials like wires, transformers, and steel costs have gone up," Aboitiz said, as he noted the underlying reasons for the planned power rate hike.
However, he assured customers of Veco and Davao Light that the adjustment will not be implemented this year.
"If we begin with Veco by end of 2008, and considering it would take 18 to 24 months for it to be completed, nothing will probably happen until 2010," Aboitiz said, but added that while it is still too early to determine the proposed rate, the increase will however be "justifiable."
He said the company believes it is high time to seek for another hike in power rates considering that its current rates are based on assets and expenses eight years ago. …