by Bohol Chronicle
Bohol Light Company, Inc. (BLCI) has lower rates of power supply per kilo-watt hour compared to the rates of Visayan Electric Company (VECO) and Mactan Electric Company (MECO) in Cebu, even with the proposed translation to rate adjustment of the approved Annual Revenue Requirement (ARR).
This was disclosed by BLCI to media although there were no comparative data supplied for other Visayan provinces like Negros Oriental, Siquijor, Leyte and Samar.
Within the approved ARR, BLCI’s proposed power rate adjustment for the commercial customer class is only pegged at 5.68/kWh, while VECO imposes P8.89/kWh, and MECO sets their rate at P7.80/kWh.
For residential customer class, BLCI imposes P5.98/kWh, while VECO’s rate is higher at P9.19/kWh, and MECO at P8.15/kWh.
In a sample computation, BLCI General Manager Engr. Eulogio Signe explained that for a residential consumption of 100kW in one month, the bill would reach P644.49 based on the old rate. It would reach P671.03 if computed under the proposed new rate, or a difference of P26.54 as supposed increase per month.
Signe pointed out that the expected increase is even lower than the average daily expenses on load for mobile phones.
In another example the BLCI cited that the bill for an estimated consumption of 500kW will only be P3,127.13 under the old rate, and would become P3,186.99 under the proposed new rate or just a matter of P59.86/month difference which is even more affordable than one’s leisure drink session, Signe pointed out.
This proposed rate increase has been designed to improve BLCI services and for benefit of the circle of valued customers in the franchise area.
BACKGROUND
Under Section 43(f) of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001 (EPIRA), and Rule 15, Section 5(a) of its implementing Rules and Regulations (IRR),authorized the Energy Regulatory Commission (ERC) to adopt alternative forms of internationally accepted rate-setting methodology.
Performance Based Regulation (PBR) emerged to serve as a rate setting methodology using a price cap to set the distribution wheeling rates to be charged by distribution utilities to their customers.
Based on the law, ERC approved Resolution No. 54 on December 13, 2006 entitled “Adopting the Rules for Setting Distribution Wheeling Rates (RDWR) for Privately Owned Distribution Utilities Entering Performance Based Regulation for the Second and Later Entry groups as MERALCO, CEPALCO and Dagupan Electric were the first to be identified.
Then, ERC issued Resolution No. 10, Series of 2010, adopting the timeline for the Fourth Entry Group of Regulated Entities entering the PBR commencing on October 01, 2011 and terminating on September 30, 2015.
The 4th entrants include Angeles Electric Corporation; BLCI; Clark Electric Distribution Corporation; Panay Electric Company; Subic Enerzone Corporation; San Fernando Electric Light and Power Company.
On September 28, 2010, BLCI filed an application for approval of ARR and Performance Incentive Scheme (PIS) with ERC under PBR regime.
On November 23, 2010, a Jurisdictional hearing, expository presentation, pre-trial conference and evidentiary hearings regarding the ARR and PIS Application of BLCI were held in Governor’s Mansion, Tagbilaran City, was made within the franchise area
BLCI posted the Draft Determination of BLCI’s ARR and PIS Application on May 21 this year at the ERC website for further comments.
On June 08, a public consultation was made by the ERC on the Draft Determination of BLCI’s ARR and PIS Application.
Finally, last July 06, the ERC, in its Decision and Final Determination, approved BLCI’s ARR and PIS Application presenting its final decision on the price control arrangements that will apply to BLCI for the regulatory period with the smoothened Maximum Average Price (MAP) of P1.02 from 82 centavos or an average increase of 20 centavos.
The approved MAP will then be translated into rates for the different customer segment of BLCI such as Residential, Commercial, Public Buildings and Street Lights and Hospitals and Radio Stations. The translation of the approved MAP into rate by customer segment is still under application by BLCI with the ERC.
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Topic: Electricity Rate in Bohol, Philippines (Read 2846 times)