Power rate cut to benefit Aklanons, says Tolentino
BY BOY RYAN B. ZABAL

KALIBO, Aklan – Vice Governor Ronquillo Tolentino lauded the recent decision of the Energy Regulatory Commission (ERC) ordering the state-owned National Power Corporation (Napocor) to reduce the power rate by 31 centavos per kilowatt-hour in the Visayas.
The cut in the Napocor’s rates will take effect in the February 26 to March 25 billing period brought about by the positive economic growth and stronger peso.
“The ERC orders should benefit Aklanon consumers and the province as a whole. It comes like a sudden fresh and cool air in a rather hot summer,” Tolentino said on ERC orders dated February 7, 2007 on ERC Case Nos. 2006-072 RC and 2006-073 RC.
The vice governor added that “the reduction by P0.0430 for Luzon, P0.3151 for the Visayas and P0.0045 for Mindanao for the first month of implementation is a relief for investors since they usually consider power, water and communication costs.”
Aklan Electric Cooperative (Akelco), the sole power distributor in the province and the northern towns of Antique including the island of Boracay .
Tolentino said he is expecting the Akelco to implement the corresponding rate changes to the monthly bill of consumers – whether commercial, residential or industrial.
The provisionally approved NPC’s petitions for rate adjustments pertains to the incremental fuel and Independent Power Producer (IPP) costs (commonly known as GRAM [Generation Rate Adjustment Mechanism]) and the foreign currency exchange rate fluctuations under the Incremental Currency Exchange Rate Adjustment (ICERA) - the cost recovery adjustment mechanism for changes in the FOREX which should have no impact on the utility’s income.
ERC Chairman and CEO Rodolfo B. Albano, Jr. said, “the public had been expecting reduction in rates as the Philippine currency exchange rate gets better, however, the directive does not reflect yet said improvement for it covers earlier billing periods.”