Soliven hails ERC directive on power rates as pro-consumers PDF Print E-mail
Saturday, 25 August 2012 14:07

The Zamboanga Chamber of Commerce and Industry Foundation, Inc. has successfully helped through intervention in lowering the cost impact of electricity bill for all Mindanao power consumers, when on August 14, 2012, the Energy Regulatory Commission (ERC) ruled and mandated the National Grid Corporation of the Philippines (NGCP) to recalculate the Ancillary Services Procurement Agreement (ASPA) rates using the rates approved which is lower than the rates previously approved by the Commission in its Order dated January 24, 2011.

The ERC likewise directed NGCP to prepare a scheme to refund the difference between the implemented and the approved rates of at least P100 million to the electric cooperatives and member-consumers in Mindanao.  The ERC, in its final ruling, granted the motion for reconsideration of the interveners in the treatment of appraisal valuation as capital recovery factor, as against acquisition cost petition of the stakeholders, and mandated TMI to collect from NGCP by way of the acquisition cost instead of the appraisal cost.

To recall, the ZCCIFI was one of the interveners for ERC Case No. 2010-0011-RC in the matter of application for approval of the ASPA between the NGCP and Therma Marine, Inc.  When TMI, in providing the subsidiary electricity under the Ancillary Service Procurement Agreement billed NGCP the capital recovery fee of capacity fee in order to allow the company to recover the cost of its investments and collected the appraisal cost amounting to $86 million which was passed on to the cooperatives and consumer-members, the Interveners or the stakeholders, which includes the Chamber, filed a motion for reconsideration requesting ERC for TMI to collect by way of acquisition cost..

“The real issue here is that the acquisition cost for the power barges 117 and 118 was only $30 Million, but Therma Marine wanted and almost got away with it, by passing on to the consumer the amount of $86 Million in a form of capital recovery fee, the appraised value of PB 117 and 118.  This in conscience we cannot allow,” Soliven said, “Hence ZCCIFI decided to intervene with ERC for an in behalf of the consumers not only Zamboanga but the entire Mindanao”

“We commend the efforts of ZCCIFI Executive Vice President Efren Wee, Mr. Edgar Lim, Mr. Roberto Valerio and all the officers and members of ZCCIFI who supported the selfless act that benefited the entire City and Mindanao as a whole,” Soliven added.