Tmetuchl Baules, Public Information Officer of PPUC, said the increase will probably be imposed next quarter as the PPUC Board is yet to deliberate on the proposed tariff adjustment.
Baules said the new power rates adjustment will be implemented according to the base rate. This base rate includes the operational cost, machine, generation and administrative cost of the PPUC.
“We raise the tariff not because of the government debt but on the base rate. If there’s a sort of miracle and the government will have $5 million and pay us tomorrow, we still implement the increase but not too high.” Baules said in an interview.
The government debt has ballooned to $4,063,319. 15, this amount is inclusive of the interests accumulated from failure to pay on time.
Last week, the PPUC conducted a two-day public outreach at the Koror State Assembly Hall.
Energy Consultant James Stewart discussed the current situation of the PPUC and the proposed adjustment tariff. However,less than 20 attended the public hearing.
During the public outreach former Ministry of State Temmy Shmull questioned PPUC for the planned implementation of the power rates. He said that adjusting tariff is like a passing to the public the burden of the government debt.
Shmull cited the news article by Palau Horizon in which PPUC stated that since e the government has not paid its outstanding debts it will be forced to increase the fees in order to make up for the losses.
PPUC, however, explained the reason for their tariff adjustment.
Baules said that once the proposed tariff adjustment is approved by the Board and signed by President Johnson Toribiong, the PPUC will set another public outreach.
The PPUC currently collects $0.24 cents per kwh in residential areas and $0.36 cents per kwh in commercial areas.
The power rate was increased in June.
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