NPC Tariff 2009

I have no idea what this is all about. Looks strange. - Nick in Manila from Bookmarklet

Tet: Well is looks like, because of the ERC actions, the consumer never sees the P15/kWh. So the ERC's work is done. The question becomes why is Napocor (and therefore taxpayers) paying P15. I'm not a lawyer - but maybe the courts are the venue for that issue? - Nick in Manila

Power rates have no way to go but up, so that the favored buyers of government assets may continue to gouge the public with higher prices. Instead of going down, the way EPIRA envisioned prices to move with privatization, the prices have gone and are going to move in the opposite direction. And that is where the ERC is taking us. The NPC official is just being honestly blunt in saying... more... - Vicente Gambito

What I'm aghast at is Pablo Anito going on a road show that simply makes this point crystal clear. I cannot believe he has not been confronted on this. I'll bet that road show gets cancelled pretty quickly here. - Nick in Manila

There is no question that the ERC has a mandate, nay, a covenant with the consumers to see to it that rates are just and fair. But what is fair in a rate setting process that is not transparent? - Vicente Gambito

"Transparency? You want transparency? Son, we live in a world that has walls. And those walls need to be guarded by men with guns. You can't HANDLE transparency." Heh. Sometimes I feel our Commission values transparency the way Col. Nathan Jessep valued the truth: http://www.youtube.com/watch... - Nick in Manila

During the hearing of the Heat Rate Caps in Cebu City last March, I insisted that the matter be heard jointly with the petition for increase in the generation base rate. The main justification for my motion was that any decision on the Heat Rate Cap would also affect the generation rate base. - Vicente Gambito

Tet - in the Heat Rate proceeding, para. 10 (page 6) NPC talks of "retaining savings derived from lower heat rates." But rest of filing doesn't address that, that I can find. Are these really caps? Needs to be clarified. - Nick in Manila

Well conceptually: Actual generation (in kWh) x Actual Heat Content of fuel delivered (in P/Btu) x Heat Rate - actual or cap (in Btu/kWh) = Allowable Fuel Cost Recovery (in Pesos). - Nick in Manila

“SEC. 4. Fixing of Rates by the Board and Review by the Public Service Commission. – The Board shall fix the rates and fees to be charged by the Corporation so that the Corporation’s rate of return shall be not more than ten per centum (10%) on a rate base composed of the sum of its net assets in operation as revalued from time to time plus two months’ operating capital." See also http://among.reklamo.ph/veco... - Vicente Gambito

I don't think so. Sec. 4 you quote addresses the "fixing or rates." If rates were fixed with intent to achieve max of 10% RORB, then having a subsequently higher "actual" RORB doesn't, in and of itself, abrogate that. - Nick in Manila

The more interesting question is the one FDC alluded to - is the requested 12% on RORB in this proceeding in conflict with your Sec. 4 reference? - Nick in Manila

One can't search for a complete schedule for ERC Case 2009-004, the ERC page search engine does not allow it. Had the search engine allowed this search, the next hearing would be on April 27 (Monday), 9 am to 5 pm, ERC Hearing Room. The April schedule of hearings shows that there is an earlier hearing on April 13 (Monday), 2pm, ERC Hearing Room, except that the case is for 2008-004. Must be a typo. - Vicente Gambito

The Hearing Schedule could stand some improvements to make it "user friendly." As it is, the presentation is very relevant only to the Commissioners and their staff that will hear the cases. Others will have to wade through the numerous cases to find the schedule of hearings on the cases of interest to them. - Vicente Gambito

In 1994 ERB granted a provisional increase of P0.184/kWh to Meralco which petitioned for a rate increase of P0.21/kWh. After the COA audit, it recommended for a rate increase of only P0.017/kWh. Four years after the provisional increase was granted, the ERB adopted the COA recommendations and ordered for a refund of the excess amounts collected. The case went all the way to the Supreme Court and was finally affirmed in April 2003. In all of those 9 years, the customers were paying ten times more on the amount of increase provisionally approved by the ERB. Clearly, the customers were disadvantaged by the precipitate and off the mark rate granted by the ERB. - Vicente Gambito

You bring up an interesting issue - does granting of provisional tariff increases, subject to refund, violate constitutional "due process" protections under Philippine law? - Nick in Manila

I am inclined to believe that the current NPC increase is being orchestrated.. - Vicente Gambito

I'm not sure people understand that we don't "vote" on rate hikes. You have to grapple with the technical and legal issues NPC has raised before the ERC. Sheesh. - Nick in Manila

They would be better off hiring a good regulatory attorney and consultant (not me!) to help the intervenors. Resolutions carry no weight before the ERC. Well, procedurally they don't. They certainly don't hurt. - Nick in Manila

Mar 31 - 2:00PM - Session Hall, City Hall, City Hall Drive, Davao City Apr 1 -9:00AM - Session Hall, City Hall, City Hall Drive, Davao City Apr 23 - 9:00AM - ERC Hearing Room Apr 24 - 9:00AM to 5:00PM - ERC Hearing Room The above schedules may be found at http://erc.gov.ph "Hearing Schedules" - Vicente Gambito

Thanks, Tet. The ERC is often so remiss in updating their site schedules, I sometimes fail to even try to check. - Nick in Manila

House hearing on power hike set April 17 Visayan Daily Star, Philippines The ERC, however, has reduced the provisional rate increase granted to NAPOCOR from P1.1460 to .8376 centavos, or a decrease of 30.84 centavos. This means the NAPOCOR power rate charge of P4.039 per kWh will become P3.7255. ...

Bacolod solon pushes inquiry on NPC rate hike News Today Online, Philippines "The decision is ill-timed as NPC's consumers, specifically the electric cooperatives serving the electricity needs of the whole country will in turn pass it on to its clients, the million of Filipinos already swamped with burgeoning expenses in light ...

FDC to push for recall of provisional power rate hike News Today Online, Philippines Groups opposing the power rate hike will continue to move for the recall of the provisional authority granted by the Energy Regulatory Commission (ERC) to National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation ... House hearing on power hike set April 17Visayan Daily Star Bacolod solon pushes inquiry on NPC rate hikeNews Today Online all 3 news articles