BY GEROME DALIPE IV
ILOILO City – The Energy Regulatory Commission (ERC) on Friday held a public hearing on the proposed new rates by the National Power Corp. (NPC) to increase the subsidized approved generation rate for distribution utilities and new power providers operating with the Small Power Utilities Group (SPUG).
NPC lawyers presented data in support of their petition during the expository presentation attended by stakeholders in the SPUG-served areas in the provinces of Iloilo, Guimaras, and Antique during the hearing at The Avenue in Mandurriao district.
Essentially, small power utilities are responsible for providing electrification to areas not connected to the main transmission grid.
These are often remote and isolated areas where extending the main grid is not economically viable.
SPUG uses various technologies, including diesel generators, hydropower, solar power, and wind power, to provide electricity to these areas. It also plays a crucial role in bringing electricity to off-grid communities, contributing to economic development, and improving the quality of life in these areas.
The proposed new subsidized approved generation rates of P9.0919 per kilowatt-hour (kWh) for residential and P10.3979 per kWh for commercial/industrial will be implemented in the provinces of Iloilo, Guimaras, and Antique from up from the currently effective P7.64 per kWh.
In an interview with Panay News, Commissioner Alexis Lumbaton said they conducted the hearing on the application of NPC, which seeks the ERC’s approval for the proposed new subsidized approved generation rates for consumers in off-grid areas.
Lumbaton said they look into the correctness of the data presented by NPC before coming up with the decision on new generation rates.
“If you look at everything, generation rates also go up. We will also look at the capacity (of the consumers) to pay in each province based on the proposed approved generation rates by NPC,” said Lumbaton.
The commissioner said they will ensure the approved generation rates will not be detrimental to the public.
Through its small power utilities group, the NPC is mandated to provide electricity in off-grid areas, particularly in areas where private investors hesitate to come in due to a lack of infrastructure and political and security concerns.
Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), NPC is mandated to provide power generation and its associated power delivery systems in areas not connected to the transmission lines through SPUG./PN
