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Mt. Province electric rates up

BONTOC, Mt. Province (Jan. 13) — Additional electric charges await Mt. Province Electric Cooperative (Mopreco) consumers this January due to adjustments the National Power Corporation (NPC) implemented.

Mopreco Manager Engr. Jude Domoguen disclosed that the cooperative would only implement the additional generation charge adjustment the NPC implemented last November.

Domoguen further said the average generation charge would remain a variable monthly because the NPC is billing the cooperative with time of use rates, where the cost of power varies during the 24-hour period. He explained that from 1am to 8am, the cost ranges from P1.8744 per kilowatt per hour (kwh) to P2.1574/kwh; while from 9am to midnight, the cost ranges from P2.0340 to P6.0601/kwh.

Domoguen added that since Mopreco cannot provide each consumer with a kwh meter with a load profile capability, the cooperative uses the average generation charge, which varies monthly.

The new generation charge in the November 26, 2005 billing shows that the average generation charge (variable) amounts to P3.8966/kwh, benefits to host communities is P0.024501/kwh and deferred accounting adjustments (DAAs) is P0.6092/kwh with a total average charge of P4.5303/kwh.

As of October 26, 2005 billing, the old generation charge shows that the average generation charge (variable) is P3.733657/kwh, benefits to host communities is P0.02450/kwh and the DAAs is P0.48690/kwh with a total average charge of P4.24797/kwh.

NPC explained that the new DAAs consisting of the 5th Generation Rate Adjustment Mechanism (GRAM) and the 4th Incremental Currency Rate Adjustments (ICRA) is a deferred generation cost covering the October 2004 to March 2005 billing period.

The Energy Regulatory Commission (ERC) authorized NPC to recover said Generation Cost in 12 months (from December 2005 to November 2006) for Luzon or until full recovery of the authorized.

Meanwhile, Mopreco clarified that the charges for the following: generation system, transmission system, system loss, distribution system, supply system, metering system, cross subsidy, lifeline rate subsidy, and power act reduction & loan condonation components are subject to the value-added tax (VAT).

The franchise and benefits to host communities taxes, missionary electrification, environmental charges, GRAM, ICERA & renewable energy portion of all other charges on the other hand are exempted from VAT.

The 10% VAT is expected to increase to 12% in February. # PIA- MP

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