Napocor asks ERC for another rate hike

State-run National Power Corp. (Napocor) has sought for an additional P4.3 billion in fees to enable its small power utilities group (SPUG) to continue operations, as well as prevent fuel shortages and the consequent shutdown of power facilities in off-grid, missionary areas.

This means, however, that Napocor will have to collect an additional 6.93 centavos per kilowatt-hour under the universal charge for missionary electrification (UCME), which is being imposed on all electricity users.

If the Napocor petition will be approved by the Energy Regulatory Commission, the resulting UCME will increase to 18.56 centavos per kWh from the current 11.63 per kWh.

It was only last month that the ERC issued the provisional authority that allowed Napocor to collect an additional UCME of 7.09 centavos per kWh, equivalent to P4.15 billion in additional funds for the SPUG operations.

“The provisionally approved amount authorizes Napocor-SPUG to recover the UCME charge starting August 2011 billing period, which will generate an estimated additional cash of P359 million per month or P1.436 billion starting September until end of 2011,” Napocor said in its application filed last August 18.