Monday, June 21, 2010

News update Power and oil prices could go up again soon.

The state-run National Power Corp. (Napocor), and the Manila Electric Co. (Meralco) are both asking the Energy Regulatory Commission (ERC) to approve their petition for higher power rates.

Napocor said that it needs to adjust its rates to cover costs associated with fuel and purchased power, while also recovering foreign-exchange related costs from October 2008 to December 2009.

In a filing with the ERC last week, Napocor wants to hike power rates to P4.64 per kilowatthour in Luzon; P4.94 pesos per kwh in the Visayas, and P0.33 in Mindanao.

Power distributor Meralco on the other hand, wants to increase its distribution charges for the next five years or from 2011 to 2015.

For 2011, Meralco is seeking to raise its distribution charge by P0.16 per kwh; P0.14 per kwh in 2012; P0.06 per kwh in 2013; P0.09 per kwh in 2014, and by P0.07 per kwh in 2015.

ERC executive director Francis Juan said consumers may need to be more judicious in the use of electricity.

"Lumalaki nga ang presyo kung halimbawang pagbibiyan ng ERC ang pagtaas ng singil pero nasa kapangyarihan pa rin naman ng lahat na kontrolin ang kanyang konsumo."

The proposed rate increases would further burden consumers already reeling from expensive electricity.

Eighty four year-old war veteran Hilario Lascota who invested his pension in a computer shop, already has a hard time keeping his business afloat. His electricity bill which usually averages P2,000 monthly, has soared to P6,000 in May.

"Siguro isasara ko na lang kung lalo pang tataas ang singil. Wala naman tayong magawa kung gugustuhin nila e."

Aside from the pending rise in power rates, consumers are also bracing for higher oil prices.

Imported gasoline has risen in recent weeks by an average of $3.95 per liter or about P1.02 per liter, while diesel prices went up by $3.80 per liter or about P0.96.

Local oil companies are expected to announce the new prices in the next few days.

On Monday, crude oil futures rose to their highest level in around six weeks after China announced it will allow some appreciation of its currency.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July, which expire Tuesday, traded at $78.80 a barrel, up $1.62 in the Globex electronic session. August Brent crude on London's ICE Futures exchange rose $1.54 to $79.76 a barrel. - based on a report of Alvin Elchico
Shell Oil president says industry less profitable than banks, IT: 'we never predict the future of oil prices'.(Energy)(Interview): An article from: San Diego Business Journal

The future of oil: prices aren't likely to go down anytime soon.(MARKET SPOTLIGHT): An article from: Business Mexico
Experts predict stable oil prices in future: scooter sales could be based less on gas mileage and more on environmental concerns and convenience.: An article from: Powersports Business

Oil Supply and Price: Future Crisis Management (Energy Paper)
Oil Supply and Price: Future Crisis Management