NGCP gets regulator’s nod to hike revenue cap
MANILA, Philippines—The National Grid Corp. of the Philippines has received the Energy Regulatory Commission’s nod to raise its maximum allowable revenues (MAR) to P42.9 billion from the P40.35 billion that was “provisionally approved” by the regulator early this year.
“In effect, the P42.9 billion is the revenue cap of NGCP for 2012. NGCP can adjust its rates for the remaining months of the year for it to realize this approved amount,” said Francis Saturnino Juan, ERC executive director.
At this level, the indicative average transmission rate should be P337.52 per kilowatt per month, up from the average rate of P317.63 per kW per month, based on the P40.35 billion MAR. It is still uncertain how or when the NGCP will collect the additional charges.
Early this year, the ERC provisionally approved P40.35 billion in maximum allowable revenues, pending the final resolution of NGCP’s application.
In the same decision, the ERC also upheld the P503-million performance incentive scheme (PIS) reward to NGCP, reflecting the transmission operator’s good performance for the regulatory year covering September 2010 to August 2011.
Also, the NGCP clarified that it has not yet increased its transmission charges amid reports that it would be implementing a hike this month.
Article continues after this advertisementNGCP spokesperson and adviser for external affairs Cynthia P. Alabanza issued the statement to clarify reports that the higher cost of electricity now has been caused in part by higher transmission charges, particularly ancillary services costs incurred by NGCP from generators.
Article continues after this advertisement“The 39 percent increase in ancillary service rates in Luzon (the comparison being made between September 2012 and October 2012 billing periods) is due to the increase in the market clearing prices for this type of service, which is a factor beyond our control,” Alabanza explained.
Ancillary service charges are not part of NGCP’s approved transmission rate as it forms part of the revenue of the power-generation firms that provide the services.
