ERC order to lower power transmission charges

The charge for electricity transmission is lower by 4 centavos per kilowatt-hour for the 2020 billing as the Energy Regulatory Commission (ERC) ordered National Grid Corp. of the Philippines (NGCP) to decrease the latter’s maximum allowed revenue (MAR).

The ERC said it ordered NGCP to implement an interim MAR of P47 billion for this year, a reduction of P11.8 billion from the grid operator’s proposed amount of P58.8 billion.This effectively reduces the transmission tariff by 4.13 centavos from 51.14 centavos a kWh to 47.01 centavos.

“The lowering of the transmission rate is again one of the efforts of the commission to provide relief to all electricity consumers, especially those that are economically disadvantaged who lost their jobs and earnings due to the implementation of the enhanced community quarantine,” ERC Chair Agnes Devanadera said in a statement.

Devanadera said NGCP’s MAR was last adjusted in 2016 and the increase in the company’s yearly revenues since then and up to this year would allow the grid operator to augment its capital expenditure requirements in order to address the forecast increase in electricity demand for 2020.

Also, there were differences between NGCP’s own computation of its capital expenditures and that of the ERC—which resulted in the grant of a lower MAR.

“The lowered transmission charge will be effective upon NGCP’s receipt of the relevant ERC order.” INQ