will be no more reason for Catanduanes Power Generation, Inc, (CPGI) to blame
low rates for future power interruptions caused by lack of fuel, following the
recent approval by the Energy Regulatory Commission (ERC) of its Electricity
Supply Agreement (ESA) with the First Catanduanes Electric Cooperative, Inc.
July 3, the Commission approved the ESA between the two parties with some
modifications and conditions, with rates slightly lower than those applied for.
Last year, the ERC’s provisional approval of the ESA specified rates which CPGI
found to be too low, with the total non-fuel charge pegged at P1.55 per
kilowatt-hour and fuel oil charge at P0.2025 per kWh.
approved ESA allows CPGI to charge P2.0018 per kWh as non-fuel charge, compared
to P2.24 as applied, and a minimum of P0.2604 per kWh as fuel oil charge. It
also permits CPGI to charge FICELCO P1.4118 per kWh has standby fee in case it
is forced to remain idle in favor of mini-hydro power plants during the rainy
new ESA rates will not be felt directly by the member-consumers as the
generation rate to be charged to them will be the approved Subsidized/Approved
Generation Rate (SAGR) of P5.6404/kWh. The difference between the SAGR and the
CPGI’s True Cost Generation Rate (TCGR) of P9.15/kWh will be recovered by the company from the National Power
Corporation’s Small Power Utilities Group (NPC-SPUG) through the Universal
Charge-Missionary Electrification (UCME)
to the ERC, the government will be able to save P67 million as reduction in
power generation subsidy as NPC’s true cost of generation is P12.12/kWh, or
nearly P3/kWh more expensive than CPGI’s rate.
savings, however, will be realized if CPGI delivers its contracted energy of
22.6 million kWh yearly. Records show that in 2010, CPGI supplied only 15
million kWh, or 66 percent of its contracted capacity, while last year, its
energy production fell to just over 5 million kWh as its operation was affected
by frequent genset breakdowns.