Higher electricity rates expected next year

The Energy Regulatory Commission has confirmed that electricity rates will be higher next year because of cost recoveries that will be passed on to the consumer.

The Energy Regulatory Commission has confirmed that electricity rates will be higher next year because of cost recoveries that will be passed on to the consumer.

 

Myrna Velasco of the Manila Bulletin reports electricity rates will likely rise by P0.39 per kilowatt-hour that will be tacked on to the Universal Charge paid by consumers. "The UC items to be reflected in the bills will comprise of P0.0313 per kWh for stranded debts; and P0.3666 per kWh for stranded contract costs," the report said.

 

The Universal Charge is meant to pay for liabilities held by the Power Sector Assets and Liabilities Management Corporation that were not covered by proceeds from the privatization of power plants and other assets. "For this round of application, some quarters are objecting not only the magnitude of cost recoveries that PSALM has been intending to pass on, but also the manner on how these liabilities were incurred," the report also said.

 

The ERC has not yet approved the application to raise rates, but it has been submitted for decision, the report said.

 

For more on this story, log on to the Manila Bulletin.

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