Luzon-based customers of the National Power Corp. (Napocor) will have to pay 19.78 centavos per kilowatt-hour (kwh) more in the coming months.
The rate hike came after the Energy Regulatory Commission (ERC) provisionally approved the power firm’s 12th generation rate adjustment mechanism (GRAM) and 11th incremental currency exchange rate adjustment (ICERA).
ERC said that based on the joint application of Napocor and the Power Sector Assets and Liabilities Management Corp. (PSALM) covering July to September 2008, the rate hike was supposed to be 72.84 centavos per kwh. The net impact on customers, however, is only 19.78 centavos per kwh because of refunds in the previous months.
Variable cost adjustments such as GRAM and ICERA allow the Napocor to recover from or refund to its customers any increase or decrease in its fuel and purchased power cost and foreign currency exchange-rate related costs.
The latest adjustment takes effect for 23 months from the Dec. 26, 2008-Jan. 25, 2009 billing period.