By MYRNA M. VELASCO
To preclude any scheme of cross-subsidization among clusters of electricity end-users, the Energy Regulatory Commission (ERC) is to enforce strict monitoring of the preferential rates being offered by power utilities.
Under Resolution No. 24, the regulatory body mandates all distribution utilities, like the Manila Electric Company, the National Power Corporation and spinoff National Transmission Corporation (TransCo) "to submit monthly reports to the Commission relative to preferential rates they granted to their customers."
The Resolution is deemed effective 15 days after its publication in a newspaper of general circulation and after filing with the UP Law Center’s Office of the National Administrative Register.
ERC said it will judiciously keep track of the preferential tariffs granted by power utilities as these may lead to cross subsidies that would thrive as a burden to other customer classes.
In keeping with the mandate of the Electric Power Industry Reform Act, the monitoring process, according to the ERC is done "to protect public interest of electricity consumers" who are not covered by such special rates.
The ERC-required report has to provide list of the the power utilities’ customers enjoying preferential rates; the kilowatt hours sold to these customers; the approved preferential rate and the level of voltage these customers are connected to.
It would be noted that NPC made specific pronouncements that it shall offer special rates to its customers in economic zones; while Meralco has rate discounts for industrial customers via its high load factor rider scheme.
TransCo also has some arrangements to some specific end-users, especially those in special economic zones.
The next key challenge for the country’s top utilities would be the offer of Meralco on customer choice program whereby industrial and commercial users with peak demand of 1.0 megawatt and beyond would be given the choice to procure their supply as they would prefer - either from the time-of-use (TOU) rate of NPC or the blended rates of Meralco.
Meanwhile, for ecozone locators, NPC has been expanding the coverage of its special discount on electricity rates for export-oriented enterprises.
It initially extended this rate privilege to seven economic zones, namely the Subic Bay Freeport in Zambales; the Clark Special Economic Zone in Pampanga; the Cavite, Bataan and Baguio City Export Processing Zone in Luzon; and the Mactan I and II Export Processing Zone in Cebu.
The power firm stressed that the rate discounts are all geared toward the government’s goal of enhancing the competitiveness of industries operating in the country.
Aside from special rates given to ecozones, NPC is also extending special rates to distressed industries, to help them advance on a way to recovery.
It would be noted that high cost of electricity thrives as a perennial concern for businesses in the country; and they have prompted government to extend them relief from such burden; otherwise, many of them would eventually be forced to fold up or to re-locate their businesses in other more-competitive markets.
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