$3M power subsidy becomes law

The subsidy will cover residential and commercial customers who make use of a lower amount of electricity per month.Presidential Chief of Staff Billy Kuartei told reporters that PPUC will start crediting consumers with the subsidy as soon as the money is withdrawn from Mega Bank.The money will be taken from the $8 million loan received from the Taiwan bank, Mega bank which is supposed to be used for Palau International Airport rehabilitation.Effective July 1, residential consumers who used up 500 kilowatt per hour and less will now pay 32.6 cents; residential customers who consume 500 to 2,000 kwh will pay 40.6 cents from the rate of 27 cents.Customers who consume 2,000 and above will now pay 45.1 cents from 29 cents.Under the new law, the PPUC must credit the fuel rate to its residential customers whose usage is no more than 500 kilowatt hours per month and for commercial customers whose usage is no more than 2,000 kwh per month.Consumers covered by the subsidy will pay the rate imposed prior to the increase.The credit will remain in effect until rate is reduced prior to the power rate increase.Residential consumers who consumes less than 500 kilowatt per hour are considered low-income earners and are eligible for subsidy. These consumers are now paying 30 cents per kilowatt per hour (kwh) from 27 cents.Small businesses are those which  have power consumption of  500 to 2,000 kwh. The rate was increased from 27 cents to 38 cents.PPUC said that there was a need for an increase because of the spiraling increase of oil in the world market.The subsidy was pushed after a public concern on the increase.