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‘Change lifestyle to cope with high power rates’
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Posted on May 08 2008
The newly appointed utility chief says many customers may have been shocked by the recent power rate hike, but they will just have to deal with it for now.
“The new rates might come as a shock for the residential customers, but the only solution to it for now is some modification to their lifestyle,” Antonio Muna, executive director of the Commonwealth Utilities Corp., said Wednesday.
Power rates doubled after the governor signed into law a bill reversing the October 2007 rollback. From paying 17.6 cents per kWh during the past two months, residential customers will not be charged rates ranging from 37.3 cents to 48.4 cents per kWh.
CUC says the high rates result from the skyrocketing price of fuel to run the power plants.
Muna said CUC is looking for ways to grant relief to the customers, but it will not come in the form of artificially reduced rates.
“It doesn’t mean we will go back to charging less than cost,” he said.
Alternative energy, according to Muna, may be part of the solution. CUC has an active request for proposals from companies interested in providing a renewable power source to the Commonwealth. It has been reported that more than a dozen firms have expressed interest. The deadline for submission of proposals is next Friday, May 16.
He said CUC also hopes that efforts to repair fuel-efficient engines would help bring fuel costs down.
Muna also said that the privatization of the power system is still an option. But the government would prefer to pursue it when the repair work is complete.
“Hopefully, our efforts to make engines efficient will contribute to our future ability to attract the best companies to take over the power plants. As you know, a viable, performing asset is more valuable than one that is not performing,” he said.
A previous effort to privatize the power system was cancelled due to contractor protests over fairness.
