The transmission rate of the National Grid Corp. of the Philippines (NGCP) is higher for the July billing period as it implements the Energy Regulatory Commission’s (ERC) decision for under-recoveries and its maximum allowable revenue.
The transmission rate for July stands at PHP0.5923 per kilowatt hour (kWh), up from P0.4611 per kWh in June.
However, the ancillary services rates should also be accounted for.
For July, the ancillary services rate went down to P0.5872/kWh from P0.6182/kWh in June.
Thus, the overall average transmission rate has risen to P1.3233/kWh from P1.2113/kWh.
Aside from the ERC-approved collections, NGCP business and regulatory development head Julius Datingaling said lower energy consumption from June to July this year also affected transmission rates.
He said the July transmission rate already incorporated the transmission grid operator’s ERC-approved maximum allowable revenue (MAR) of P58.10 billion, which the regulator allowed to be collected within 84 months, up by P6.62 billion previously.
The MAR, or what ERC deems should be NGCP’s revenue ceiling, is part of the grid operator’s 4th Regulatory Period Reset, which covers 2016 to 2022.
Under the 4th Regulatory Period Reset, the NGCP is asking ERC to allow it to recover P552.19 billion, but was only authorized to collect P335.79 billion.
NGCP Assistant Vice President and head of public relations department, Cynthia Alabanza, during the same briefing, said the amount they want to recover is what they have spent to upgrade and put up new transmission lines, thus, the ERC decision is not favorable for them.
“This is something we are considering,” she said when asked if they would appeal the ERC decision.*PNA
