(UP Diliman Information Office) Key players in the power sector will come together at the forum “Reducing Power Rates by at least P2.00” to react to the results of a groundbreaking study by four UP professors revealing how electric rates may be reduced by as much as P2 per kilowatt hour.
The study was conducted by the following faculty members of the UP College of Engineering: Rowaldo R. Del Mundo, Associate Professor at the Department of Electrical and Electronics Engineering (EEE) and program director of the Competency Training and Certification Program in Power System Engineering of the UP National Engineering Center; Edna A. Espos, senior lecturer teaching economics of energy regulation and competition at the Graduate Program in Energy Engineering; Dr. Allan C. Nerves, Associate Professor at the EEE; and Ivan Benedict Nilo C. Cruz, a lecturer and a University Research Associate at the EEE.
The forum presents the preliminary results of the study “Anatomy of Power Rates in the Philippines,” which shows that reduced power rates may be effected through a combination of simple adjustments in regulatory/implementing policy and an amendment of the Electric Power Reform Act of 2001 (EPIRA).
It will be held at the Engineering Theater of Melchor Hall at the University of the Philippines Diliman at 8:30 a.m. on August 4.
The study shows that the P2/kwh savings can be generated from the following: non-application of TOU rates to non-TOU customers or reversion to basic average generation charge to generate savings of P0.70; reduction in NPC basic average generation charge from Peso appreciation (P0.14); reduction in NPC Basic Average Generation Charge from plants sold and removed from rate base (P0.8); partial adjustment of distribution charges from appraisal increase (P0.10); cost of missionary electrification assumed by government (P0.0373); removal of charge for benefit to host communities (P0.01); removal of systems loss VAT (P0.50-0.60 kwh lost); and removal of government unencumbered share of NatGas royalty (P0.44).
The study is funded by an Open Grant from the Office of the Chancellor through the Office of the Vice Chancellor for Research and Development.
Industry players invited to react to the study include the following: Amb. Cesar B. Bautista, Co-chair, National Competitiveness Council; Cyril C. del Callar, President, National Power Corporation; Jesus P. Francisco, President and Chief Operating Officer, MERALCO; Generoso M. Senal, Asst. Vice President for Corporate Planning, National Transmission Corporation; Lassi Matti A. Holopainen, President, Wholesale Electricity Spot Market; Helena C. Tolentino, Vice President for Power Sector Assets and Liabilities Management Corporation (PSALM); and Irma C. Exconde, Asst. Director, Electronic Power Industry Management Bureau.
The forum is free and open to the public.