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Friday, March 14, 2008

 

Regulator orders distributors
to expand power discounts

By Euan Paulo C. Añonuevo, Reporter

THE Energy Regulatory Commission (ERC) has directed electricity distributors sourcing their supply from state-owned National Power Corp. (Napocor) to allow consumers to avail of a scheme that charges lower rates whenever their use falls within off-peak periods.

In a decision, the ERC said that it has given the green light to distributors to offer the time-of-use (TOU) rates to their customers on a voluntary basis.

Under Napocor’s TOU scheme, rates are priced depending on the demand for electricity at a certain period of the day. Electricity use during the evenings and any other time of the day when power consumption is low will be charged lower than during peak periods.

Customers availing of the TOU program will be installed a special electric meter, at the customer’s cost, to enable their distributor to bill on a time-sensitive system.

The regulator said its decision will initially apply to distributors sourcing all their power supply from Napocor.

The ERC said that it will issue a separate set of rules for utilities, like the Manila Electric Co. (Meralco), which buys power from sources other than Napocor.

“The customers of Meralco and distribution utilities similarly situated will thereafter enjoy the benefit­s of TOU rates,” the regulator said.

When customers subscribe to the TOU scheme, demand for electricity is shifted to off-peak periods and the use of expensive generating plants during peak periods is lessened.

To further promote the scheme, the ERC, in the same decision, also instructed distributors to conduct education programs where they can describe the benefits of the TOU scheme.

  
 

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