ERC approves increased subsidized rates for SPUG suppliers

THE Energy Regulatory Commission (ERC) has approved the petition of 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).

Generation rates in Luzon, the Visayas, and Mindanao will increase by P0.7289 per kilowatt-hour (kWh), P0.8345 per kWh, P0.6702 per kWh, respectively, in the first billing period of the year.

On the second year, rates will increase in Luzon, the Visayas, and Mindanao by P1.3116 per kWh, P1.5022 per kWh, and P2.0029 per kWh, respectively.

Another generation rate hike of P1.7496 per kWh, P2.0029 per kWh, and P1.9048 per kWh will be implemented on the third year in Luzon, the Visayas, and Mindanao grids, respectively.

“On one hand, for SPUG customers, this will mean an increase in their bills.  On the other hand, this will reduce the amount of subsidy needed from on-grid customers (via the universal charges for missionary electrification) like Meralco customers,” Laban Konsyumer, Inc. President Victorio Mario A. Dimagiba told BusinessWorld in a Viber message.

In its petition, the NPC wrote that it filed the request in its capacity as the implementing agency for missionary electrification, which is to be funded through the revenue from sales in missionary areas and from the universal charge to be collected from all electricity end-users as determined by the ERC.