[ Manila Bulletin Online ] April 2, 2008
By MYRNA M. VELASCO
The Energy Regulatory Commission (ERC) has approved an average P0.3672 per kilowatt hour (kWh) adjustment in the unbundled rates of Subic Enerzone Corporation, a distribution utility servicing the electricity requirements of end-users at the Subic Bay freeport zone.
From a uniform charge of P0.5975 per kWh for all customer classes, the distribution system charges of SEZ in its unbundled rates have been adjusted to: P1.8223 per kWh for residential end-users; P0.4850 per kWh for commercial end-users; P0.3617 per kWh for industrial customers and P1.2376 per kWh for street lights.
It must be noted that rates for residential and street lights have gone up; but there was marked reduction in the rates for commercial and industrial end-users.
The revised rates of SEZ will be implemented starting on its 26 October 2008 billing cycle.
Given the lifeline subsidy rates for smaller endusers, the ERC has reminded the utility firm that "the cost of subsidy to lifeline end-users shall be passed on to all non-lifeline end-users."
The Commission stated that for SEZ, the lifeline discounts resulted in a lifeline rate subsidy by other end-users of P0.0001 per kWh.
In its decision, the ERC has trimmed down the total annual revenue requirement of SEZ to P159.846 million.
There was a downward adjustment of P6.958 million from the P168.804 million that the Aboitiz-controlled firm has applied for.
The sound value appraisal of SEZ’s properties, plant and equipment in service also suffered disallowances of P25.457 million from the P660.860 million that it submitted in its application.
"The Commission did not recalculate SEZ’s rate base due to the current appreciation of the Philippine peso over the US dollar. The value of the assets as appraised considered other factors aside from foreign exchange rates, such as the Consumer Price Index, the remaining life of the assets and its physical condition, among others," the ERC ruling has emphasized.
The proposed operations and maintenance expenses of the company has also been slashed by P4.023 million to P37.717 million from P41.741 million as applied for.
"Distribution utilities are expected to incur only prudent and reasonable costs," the ERC has noted.
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