Clark locators get power rate discount
Locators at the Clark Special Economic Zone (CSEZ) may now enjoy a 50-percent discount on their power transmission rates, the Energy Regulatory Commission (ERC) said yesterday.
The ERC said it has given National Transmission Corp. (TransCo) and Clark Electric Distribution Corp. (CEDC) the go-signal to implement an agreement the two parties signed recently.
CEDC is the power distribution arm of Clark Development Corp. (CDC), the state agency managing the CSEZ.
The ERC approved the memorandum of agreement (MOA) and the transmission service agreement between the two parties which will lead to reduced power costs for CSEZ locators.
Based on the MOA, TransCo will reduce power delivery service charge by 50 percent on the ERC rate of P242.58 per kilowatthour for a period of not more than five years.
"The commission recognizes the continued growth in the economic zone and strong impetus for competitive power rates in order to attract investments in the region," the ERC said.
In approving the MOA, the ERC also recognized that TransCo would incur losses from the agreement. With the discount, TransCo is projected to lose about P625 million for the five-year discount period from 2007 to 2011.
But the ERC said these losses would be somewhat recouped through investments that could be generated from the MOA.
"This will encourage more investments in the Philippines. Without relief to various locators within CSEZ, their closure or relocation to other countries will be inevitable. Such scenario will have a significant and negative effect on the national economy through the loss of both foreign exchange revenues and employment," the ERC said.
The ERC also pointed out that since the discount given by TransCo to CEDC is a business decision, any losses that the transmission company may incur "should not give rise to any form of cross subsidy and under recoveries."
At the onset of the year 2006, TransCo and CDC had agreed to jointly construct a new P500-million transmission line to support the expanding power needs of the export processing zone.
The transmission line is expected to be operational by end of 2007.
At present, Clark has about 408 locator-firms, of which 349 are operational, significantly contributing to Clark’s export performance.
Clark’s exports grew by a faster rate of 15 percent compared to the national figure, which only grew by 3.9 percent in 2005.
The ERC said it has given National Transmission Corp. (TransCo) and Clark Electric Distribution Corp. (CEDC) the go-signal to implement an agreement the two parties signed recently.
CEDC is the power distribution arm of Clark Development Corp. (CDC), the state agency managing the CSEZ.
The ERC approved the memorandum of agreement (MOA) and the transmission service agreement between the two parties which will lead to reduced power costs for CSEZ locators.
Based on the MOA, TransCo will reduce power delivery service charge by 50 percent on the ERC rate of P242.58 per kilowatthour for a period of not more than five years.
"The commission recognizes the continued growth in the economic zone and strong impetus for competitive power rates in order to attract investments in the region," the ERC said.
In approving the MOA, the ERC also recognized that TransCo would incur losses from the agreement. With the discount, TransCo is projected to lose about P625 million for the five-year discount period from 2007 to 2011.
But the ERC said these losses would be somewhat recouped through investments that could be generated from the MOA.
"This will encourage more investments in the Philippines. Without relief to various locators within CSEZ, their closure or relocation to other countries will be inevitable. Such scenario will have a significant and negative effect on the national economy through the loss of both foreign exchange revenues and employment," the ERC said.
The ERC also pointed out that since the discount given by TransCo to CEDC is a business decision, any losses that the transmission company may incur "should not give rise to any form of cross subsidy and under recoveries."
At the onset of the year 2006, TransCo and CDC had agreed to jointly construct a new P500-million transmission line to support the expanding power needs of the export processing zone.
The transmission line is expected to be operational by end of 2007.
At present, Clark has about 408 locator-firms, of which 349 are operational, significantly contributing to Clark’s export performance.
Clark’s exports grew by a faster rate of 15 percent compared to the national figure, which only grew by 3.9 percent in 2005.
By Donnabelle L. Gatdula - The Philippine Star
posted by OlongapoCity Zambales at
7:00 AM
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