Underlying public enterprise is the concept of cost

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Unformatted text preview: its in the past five years. A brief analysis is carried out for each of the public enterprises. Issues of cost recovery and user charges and fees are discussed. 5.1 Public Utilities Department The Public Utilities Department of Olongapo has been a corporation since 1960s. It distributes power to the city, which is bought from the privatized Manila Electric Company (Meralco), and is responsible for the city's power distribution infrastructure. PUD revenue accounts for approximately 50% of the LGUs total income. A significant part of the total earnings are paid as fees to purchase electricity, while the rest covers some portion of operations and maintenance. The electricity is bought at 1.78 pesos and sold in the range of 3 to 4 psos. The amount of the user charge is calculated every month through a set basic rate that is adjusted for the oil prices and inflation by a PEA factor (Purchased Energy Factor). The charge is also based on the type of use (residential, commercial, government and industrial). The department has been undergoing significant c...
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