Federalism might hike power rates


The National Power Corp. (Napocor) warned federalism could trigger higher power rates in Small Power Utilities Group (SPUG) areas.

“The problem will lie in the universal charge for missionary electrification, right now there are two sources of revenue: electric cooperatives and the universal charge. The universal charge is collected from the entire country,” Napocor President and Chief Executive Office Ma. Gladys Cruz-Sta. Rita said.

Under federalism, she noted that the power rates of areas under SPUG power plants, located in off-grid areas, will increase.

The UCME is charged from all grid-connected customers through their monthly power bills.

The Napocor president cited the SPUG areas in MIMAROPA and Bangsamoro will be among those that will have higher rates. However, she said the Malampaya fund and the fund from Lake Lanao could be set to replace the subsidy. Sta. Rita stressed the true cost of generation rates in the SPUG areas could increase up to PHP12 per kilowatthour (kWh), which is double from the current payment of electric cooperatives at PHP6 per kWh. PNA


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