NGCP eyes cost recovery charge

The National Grid Corp. of the Philippines (NGCP) wants to recover from power consumers in Luzon and Mindanao the amount it spent in repairing transmission assets and facilities damaged due to rain-induced landslides as well as sabotage incidents.

In a filing with the Energy Regulatory Commission, NGCP said it wants to collect P9.8 million through monthly pass-through charges starting October 2014 to December 2015 “or until such time that the amount incurred is fully recovered.”

The transmission firm asked for permission to charge Luzon and Mindanao customers pass-through amounts. NGCP asked to charge Luzon customers P0.0338 for 2014 and P0.0083 for 2015. As for Mindanao customers, NGCP wants to collect P0.2830 for 2014 and P0.0703 for 2015.

The P9.8 million represents additional capital expenditure to complete the rehabilitation, repair and restoration of its transmission assets and other related facilities, NGCP said.

Much of the additional cost was due to sabotage incidents in Mindanao, which cost the firm P3.3 million. NGCP said that on Sept. 1 and 26, 2013, its transmission assets and other related facilities in Maguindanao and Cotabato were damaged due to bombings “by lawless elements.” The company said it had reported the incidents to the Sultan Kudarat Municipal Police Station in Maguindanao and to the Kabacan Municipal Police Station in Cotabato.

Other additional costs were due to repair damage caused by landslides due to continuous rain (P2.6 million), Typhoon Santi (P2.2 million) and Typhoon Vinta (P1.7 million).

NGCP also wants to recover the net fixed asset value of the transmission assets and other related facilities damaged by force majeure incidents, which are not covered in the pass-through amount, the company said.

NGCP asked to collect the amount in the fourth regulatory period given that the said amount would have been fully recovered if these assets had not been damaged by said incidents.

“The occurrence of the aforementioned force majeure event requires capital infusion, the recovery of which should be allowed to avoid putting financial strain in the transmission provider, and to allow it to continuously provide the necessary transmission service to the grid customers,” NGCP said.

The Sy-led transmission firm said that it is allowed to recover the cost acquired for the restoration, rehabilitation and repair of damage sustained by NGCP transmission assets and other related facilities as a result of a force majeure event pursuant to Section 10.1.1 of the Rules for Setting Transmission Wheeling Rates.