In an announcement, the Palau Public Utilities Corporation (PPUC) said the new rate decrease will apply for billings issued on or after Nov. 1, 2008.
The new residential rate will be 28.6 cents to 21 cents, residential areas consuming 501 to 2,000 kilowatt will have a 29 cents rate compared to the current 36.6 cents.Residential consumers that make use of 2001 kilowatt and more will have a rate of 33.5 cents from the 41.1 cents.The commercial and government rates will now be 33.5 cents compared to the 41.1 cents.Earlier PPUC implemented subsidy on low income earners.Kione Isechal, PPUC Chairman of the Board said that oil prices in the world market is now at $63 per barrel. The price went up to $147 per barrel in July.The drop in the oil prices also reduced fuel prices in Palau.The average fuel price is now at $4.05 per gallon.The 21 cents that will be collected starting Nov. 1 is expected to further go down by December, Isechal said.He said the new reduced rate still does not reflect the $63 per barrel price because PPUC uses a two-month cycle for ordering.
Pursuant to the power subsidy law, customers who consume 500 or less kilowatt-hours of power per month are eligible for the subsidy.After PPUC received subsidy funding in early September, it adjusted customer billings for the month.Customers who are subsidized will still pay the power rates set in May 2008 or prior to the rate increase.PPUC have readjusted the billings for October so that appropriate subsidies will be provided to customers who qualified in July and August.The subsidy law, which aims to benefit low-income residents and small businesses, provided PPUC $3 million after it raised its power rate by 33 percent for homes and 47 percent for businesses.The $3 million came from the $8 million airport rehabilitation loan from Taiwan.
