Starting Oct. 1, 2024, the Palau Public Utilities Corporation (PPUC) will reduce power rates by $0.012 per kilowatt-hour (kWh) under a new billing system that incorporates a Distributed Energy Rate (DER).
The DER will replace the Automatic Fuel Price Adjustment Clause (AFPAC). According to PPUC, the DER will be based on actual supplier invoices, fuel transportation costs, lubricating oil expenses, and solar energy costs from Independent Power Producers (IPP). The new rate calculation will not include inflation projections.
The DER rate will be set at $0.277 per kWh across all four billing categories. The base rate will vary depending on customer type, including residential customers using 0-150 kWh, residential customers using 151-500 kWh, residential customers using more than 500 kWh, and commercial or government customers. (By: L.N. Reklai)
