The government subsidy aimed at keeping the power rates from increasing has been received by PPUC (Public Power Utilities Corporation) as of January 4, 2022.
“Before when I buy a $20 token, I can use it for a month, and now $20 only buys half of the power it did before. I have to buy $40 worth of token to cover one month,” complained a PPUC customer who wanted this reporter to ask President Whipps about the rates at the next press conference.
PPUC explained yesterday that it had received the subsidy but for token customers, the implementation of the subsidized rates is delayed one month due to a system design that sets rates at the beginning of the month.
The application of the rates differs from post-paid accounts and token accounts, according to the PPUC press release. For post-paid (conventional meter) accounts, the subsidized rates will apply this January 5, 2022, while for token customers, the rates will apply starting February 1, 2022. The token customers will be reimbursed in the form of KWH credits in February, since the rates for January have already been set.
The new subsidized power rates are .275 for residential usage of 0-150 KWH, .0349 for residential usage of 151-500 KWH, and .394 for residential usage of 500+ KWH. For Commercial/Government/ROP it is .394 per KWH. The government’s subsidy deducts around .08 cents from the new tariff rates that went into effect this January 1, 2022.
PPUC passed new tariffs last year aimed at full cost recovery. The rates nearly doubled over the last year with a residential customer using 0-150 KWH going from 20 cents per kWh to 35 cents. For residential customers with 151 to 500 KWH, the rate goes from 27 cents to 43 cents. Commercial, government, and residential users with 500+ KWH, their rates will be 47 cents per KWH. To extend assistance to the people during this pandemic, the government offered a power subsidy of $1.5 million to PPUC in the FY 2022 Unified Budget. The funds were authorized but not appropriated, and as such, in PPUC’s letter to Senate in October 2021, PPUC Chairman Ngiratmetuchel Belechel said that if funds were not received by PPUC by December 31, 2021, the rates will go into effect.