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Wednesday, July 16, 2008

 

ERC issues rules on prepaid
retail electricity service

By Euan Paulo C. Añonuevo, Reporter

HOUSEHOLDS may soon avail of “prepaid” meters to control their electricity consumption after the Energy Regulatory Commission (ERC) released the draft rules for the said scheme.

The regulator recently put up for public scrutiny the rules for prepaid retail electricity service that is expected to help consumers cope with the country’s high cost of electricity, which is second only to Japan in the region.

Under the proposed rules, prepaid meters to be offered to the public should store at least two months’ worth of electricity consumption.

The rates to be applied in any prepaid transaction “should be based on the previous month’s postpaid rate” but will not affect subsidized rates for households consuming less than 100 kilowatts of electricity per month.

Distribution utilities will shoulder the cost of prepaid meters and no deposits will be collected for this.

“All interested parties may submit their comments in both hard and soft copies on the proposed rules on or before August 15, 2008,” the ERC said.

The ERC likewise scheduled public consultations on August 26 and September 2 for electric utilities.

The proposed prepaid metering scheme comes on the heels of a prepaid scheme offered by Seaoil Philippines Inc. in light of the soaring price of crude in the world market.

Seaoil’s “Price Lock Fuel Prepaid Card” gives cardholders an easier time budgeting their fuel expenses as they will be insulated from further spikes in gasoline costs during the promo period.

But as prepaid schemes may offer consumers only a temporary reprieve from high fuel and electricity costs, the Department of Energy is urging the public to shift to energy saving technology and alternative energy use to cut their costs.

The Energy department is set to take the lead with the launch of the “Switch Movement” to address the issues of energy security and climate change through the adoption of best energy practices in the country. The movement aims to promote the use of compact fluorescent lamps in lieu of incandescent bulbs. It also calls for the switch from petroleum-based fuels to alternative fuels, from kerosene to renewable energy sources in remote rural areas, from fuel-based technologies to renewable energy technologies in power generation, and from vestiges of centralized energy planning to more participative planning at the local level.

  
 

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