ERC okays Ilocos Norte Electric Cooperative rate cut

The Energy Regulatory Commission (ERC) has approved the final rate reduction due to loan condonation of the Ilocos Norte Electric Cooperative Inc. (INEC).

The ERC said it has approved for immediate implementation an average reduction of 15.90 centavos per kilowatthour (kwh) in the electricity charge to INEC customers.

Based on Executive Order 119 issued by President Arroyo on Aug. 28, 2004 in relation to the Electric Power Industry Reform Act (EPIRA), the Power Sector Assets and Liabilities Management (PSALM) has assumed the outstanding financial obligations of all electric cooperatives (ECs) from the National Electrification Administration (NEA) and other government financial institutions used in financing its rural electrification programs to support the restructuring program of the ECs.

The ERC was also mandated to evaluate the loans to be condoned and ensure that the rates will be reduced commensurate with the resulting savings due to the removal of the amortization payments of their loans.

"This is a timely reprieve for the people of Ilocos Norte, particularly the marginalized sector. Rest assured that ERC will continue to work hard to ensure that electricity service in your area is sufficient and reliable, and the rates are reasonable," ERC chairman Rodolfo B. Albano Jr. said.

Except for irrigation and public building, Albano said all other customer-types will enjoy reduced power rates.

The ERC chief said there are other rate-bearing issues on INEC that the Commission is currently evaluating.

The final determination will be released once all pertinent information being gathered and due process complied with, Albano said.