Luzon-Mindanao power rates lowered by foreign exchange costs
Luzon and Mindanao-based customers of the National Power Corp. will enjoy a reduction in theri power rates for the next nine months.
For Luzon customers, this will amount to US$0.0078 per kilowatt-hour.
On the other hand, Mindanao rates will be down by US$0.0059 per KW.
The Energy Regulatory Commission explained that this was caused by lower foreign currency exchange costs.
In the Visayas, the ERC has allowed Napocor to increase its rate by US$0.0021 for the next 20 months.
These rate adjustments were part of the joint applications filed by Napocor and the Power Sector Assets and Liabilities Management Corp., the state agency tasked to manage the former’s books, for the recovery or refund of foreign currency exchange rate fluctuations incurred by the power company from its debt servicing and operations.
Upon approval of the ERC, power generation companies like Napocor could adjust their rates based on an incremental currency exchange rate adjustment cost recovery mechanism.
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Tags: foreign exchange cost, energy regulatory commission, Power Sector Assets and Liabilities Management Corp.
