NGCP seeks new rates

The National Grid Corp. of the Philippines has sought regulatory approval for a maximum allowable revenue (MAR) of P47.78 billion for 2012, which will allow it to implement new transmission rates.

In a filing with the Energy Regulatory Commission, the NGCP said that the proposed MAR would translate to an indicative average rate of P376.08 per kilowatt (kW). The operator of the country’s electricity superhighway wants the new rates to take effect during the billing period that starts on Dec. 26, 2011, until Jan. 25, 2012.

The NGCP stressed in its application the necessity of a timely implementation of the rate or tariff changes because this would allow “the even spread of the increases or decreases” throughout the 12-month billing period.

“Should the rates be an increase, a delay of one, two, three months or more will bring about a significant and abrupt increase in the rates upon implementation,” the company warned. “Further, the timely implementation of the rate changes will reduce, if not eliminate, the risk of under-recovery which may be substantial to NGCP.”

The new transmission charge formed part of NGCP’s application for the third regulatory period covering 2011 to 2015, under the performance based regulation scheme.

With the approval of MAR and the new transmission charges, NGCP will be able to implement capital projects scheduled for that year.

NGCP president and CEO Henry Sy Jr. said in an earlier interview that the company had earmarked P48 billion for the third regulatory period and would be used to fund priority projects as indicated in the NGCP’s Transmission Development Plan.