Business World Online
Posted on January 23, 2011 10:15:16 PM
TRANSMISSION RATES charged by National Grid Corporation of the Philippines (NGCP) will go down after a provisional revenue cap for the firm was approved last week by regulators.
The Energy Regulatory Commission (ERC) said that last Jan. 17 it had set a 2011 maximum annual revenue (MAR) of P46,284.78 million for the firm, which would lead to an average P2.64 cut in the transmission charge to P364.27 per kilowatt (kW).
"On [a] per grid basis, the average monthly reduction will be P2.38/kW for Luzon, P0.09/kW for Visayas and P6.61/kW for Mindanao," the ERC said in a statement issued yesterday.
The new rates will apply to NGCP’s January billing.
A company spokesman said they still had to calculate the final impact of the new transmission rates. A ERC official said consumers would start benefitting next month.
"We have yet to discuss internally how the maximum average revenues approval affects our rates," NGCP spokesman Cynthia D. Perez-Albanza said in a text message.
Francis Saturnino C. Juan, ERC executive director, told BusinessWorld: "Implementation is for this billing period so distribution utilities and end-users may feel it next month".
He was quoted as saying in the ERC statement that "the performance-based regulation scheme adopted for the transmission sector is beginning to reflect a favorable impact in terms of price on electricity consumers..."
NGCP last December filed its MAR application for 2011, which the ERC said was based on November’s final determination of ceilings for the third regulatory period covering 2011 to 2015.
The provisional cap approved last week will still be subject to public hearings, the ERC said.
NGCP took over operations of the country’s electricity grid from National Transmission Corp. in 2008. The firm was formed after the government sold a 25-year license for $3.95 billion to a consortium led by the State Grid Corporation of China.
"On [a] per grid basis, the average monthly reduction will be P2.38/kW for Luzon, P0.09/kW for Visayas and P6.61/kW for Mindanao," the ERC said in a statement issued yesterday.
The new rates will apply to NGCP’s January billing.
A company spokesman said they still had to calculate the final impact of the new transmission rates. A ERC official said consumers would start benefitting next month.
"We have yet to discuss internally how the maximum average revenues approval affects our rates," NGCP spokesman Cynthia D. Perez-Albanza said in a text message.
Francis Saturnino C. Juan, ERC executive director, told BusinessWorld: "Implementation is for this billing period so distribution utilities and end-users may feel it next month".
He was quoted as saying in the ERC statement that "the performance-based regulation scheme adopted for the transmission sector is beginning to reflect a favorable impact in terms of price on electricity consumers..."
NGCP last December filed its MAR application for 2011, which the ERC said was based on November’s final determination of ceilings for the third regulatory period covering 2011 to 2015.
The provisional cap approved last week will still be subject to public hearings, the ERC said.
NGCP took over operations of the country’s electricity grid from National Transmission Corp. in 2008. The firm was formed after the government sold a 25-year license for $3.95 billion to a consortium led by the State Grid Corporation of China.
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