Power rate hikes loom after ERC allowed NGCP to recoup P28.3B
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MANILA, Philippines — Electricity charges are bound to further rise as the Energy Regulatory Commission (ERC) has allowed the country’s grid operator to recover P28.29 billion in project costs.
This was as the ERC finally completed the rate reset of the National Grid Corp. of the Philippines (NGCP) covering the fourth regulatory period, which fixed its maximum allowable revenue (MAR) at P335.78 billion for 2016 to 2022.
It said that the NGCP – in which a 20 percent stake will revert to government control through a buy-in deal sealed by Maharlika Investment Fund – has seven years or 84 months to regain its grid investments.
In turn, power consumers will shoulder an additional cost of P0.1013 per kilowatt-hour (kWh) in transmission rates.
According to the ERC, the amount covers the P0.0629 per kWh average increase in the basic transmission charge and additional P0.0384 per kWh corresponding to the under-recovered portion of the increased MAR.
A regulated entity is required to present its expected spending and proposed projects over a five-year period. Based on these, the ERC evaluates how much should be passed on to consumers.
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