[Lightningrod]

Cebu power utility hikes rates under PBR scheme (7/30/2010


CEBU CITY — The Visayan Electric Co., Inc. (VECO) expects to raise its asset base by 15% as it enters the four-year regulatory period under the performance-based rate scheme (PBR).

Consumption within its franchise area is also expected to increase by at least 3% this year, with peak demand projected at 346 megawatts, while electricity rates will be increased by 2.22% for wholesale power and 4.62% for general power effective July 1 until June 30, 2011.

The electricity rate for the residential sector is up by 3.41% to P7.9152 per kilowatt-hour (kWh) from P7.6543/kWh under the PBR, a rate-setting method that provides incentives and penalties based on service levels of power distribution utilities.

Meanwhile, the consumption threshold for “lifeline subsidies” has been raised to 100 kWh a month, allowing more small consumers to avail themselves of discounts.



http://philenergydig...scheme-7302010/