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Muna: Lifting of power rates’ rollback would stabilize CUC
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Posted on May 06 2008
Newly-appointed Commonwealth Utilities Corp. executive director Antonio Muna said that Gov. Benigno R. Fitial’s lifting of the power rates rollback is a positive development for the financially troubled agency.
Muna said the suspension of Public Law 15-94—the law that rolled back utility rates—will also allow for some stability in revenues and relief to the central government in providing funding to CUC that it may need in other areas.
“This should allow the governor to dedicate those assets to other areas,” said Muna during a news briefing on Monday, when he replaced Anthony Guerrero as the utility agency’s chief.
Fitial on Saturday signed into law the omnibus bill that provides CUC cash for fuel. The measure, now Public Law 16-2, aims to help CUC reduce its expected shortfall of $11.3 million by Sept. 30, 2008.
The measure suspends up to Dec. 31, 2008, the power rates rollback, which reportedly caused CUC a monthly shortfall of $ 1million in fuel costs alone.
In addressing CUC’s financial shortfall, Muna said the agency obviously needs to get back to the rate that was implemented prior to the rollback.
“It has to be sufficient,” Muna stressed, adding that because the rollback rate was not sufficient, CUC couldn’t pay for its operational costs.
The executive director said his job is to make sure that the operational costs are at kept low, while delivering the required service.
“It’s going to be my job to ensure that whatever rate we do promulgate or ask for is sufficient, that the rate that we will ask for is going to be based on the least amount of costs with respect to the operational requirements or financial requirements of CUC,” he said.
Muna said the $17.6 cents per kilowatt-hour rate for residential area is not enough, considering the cost of fuel continues to be over a $100 a barrel.
“We need to make sure that whenever we buy oil, we can pay for it accordingly,” he said.
The executive director underscored the need for CUC to set up a system that will preclude the central government’s continued injection of funds into the utility agency.
“CUC as a public corporation, as having a revenue-generating capability, should be able to pay for itself,” Muna emphasized.
