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Friday, July 21, 2006

Napocor, Meralco near agreement on customer choice program

The Philippine Star 07/22/2006

State-owned National Power Corp. (Napocor) expects to come up with an agreement soon with the Manila Electric Co. (Meralco) for the implementation of what it calls customer choice program (CCP).

Napocor corporate communications officer-in-charge (OIC) Alma P. Hermosura said they are holding a series of meetings with Meralco to pursue this program.

"We have been conducting continuous discussions with Meralco. Although there are still some issues that have to be resolved, there are already some agreements reached," she said.

Early this year, Meralco wrote a letter to President Arroyo to express its willingness to allow its customers with a monthly electricity demand of at least one megawatt (MW) the right to choose their own suppliers, with the option of availing of the time-of-use (TOU) rates of the Napocor.

Deemed "unconditional", the "Power of Choice" offer by Meralco elicited positive reactions from various business and industry sectors, as well as from key government agencies.

Energy Secretary Raphael P. M. Lotilla, in a joint statement with Economic Planning Secretary Romulo L. Neri, commended this move by Meralco, saying "it will help reduce the costs of doing business in the Meralco franchise area, help promote investments in the creation of additional jobs, and help push privatization forward".

In a letter dated April 7, 2006, Meralco informed its customers with at least one MW monthly consumption, including the head office of the National Power Corp., that the proposed program is not yet the start of retail competition and open access as defined by the EPIRA.

Meralco said the offer is a gesture of cooperation, and is being made to provide our large customers the option of availing the present time-of-use (TOU) rates of the Napocor."

"Those who will not be qualified and benefit from the NPC TOU rates can opt for Meralco’s average mixed generation charges which are computed monthly based on the actual blend of energy sourced from Napocor and Meralco IPPs.

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