Wednesday, February 15, 2017

Napocor seeks rate adjustment to recover P1B

Posted on January 24, 2017

STATE AGENCY National Power Corp. (Napocor) is seeking regulatory approval to charge electricity consumers more than P1.11 billion or a monthly equivalent of 1.34 centavos per kilowatt-hour (kWh) for one year.
The amount, if approved, will find its way in the monthly power bill of consumers and will cover the difference between what the agency was allowed to charge as against what it was able to collect for 2015.

“The recovery of shortfall within one year or 12 months would be reasonable and timely in order for [Napocor] to augment its financial requirements to provide up to date recovery and adjustment of the ensuring years’ subsidy requirements,” Napocor said in its filing with the Energy Regulatory Commission (ERC).

The filing, which was published in newspapers on Monday, “are merely reimbursement of actual expenses for CY [calendar year] 2015,” Napocor said, adding that “there are no carrying charges calculated and being proposed herein.”

Napocor, the government-owned corporation mandated to bring electricity to remote areas that are not connection to the transmission system, is authorized by law to charge a return on its rate base composed of the sum of its assets in operation plus two months operating capital.

As determined by the ERC, its collection -- in the form of a so-called “universal charge” -- is imposed on all electricity end-users.

In its application with ERC, Napocor said it required P12.975 billion in revenue during the period, which is higher than its sales of P5.731 billion. This leaves P7.24 billion for collection via the universal charge. For 2015, it said the actual revenue from universal charge was P6.211 billion.

It calculated the shortfall at P1.033 billion, which excludes the cash incentives for renewable energy developers of around P78.76 million. The combined figure results in the final amount the agency seeks to recover.

Napocor said the calculation of its revenue requirement included the following expenses: fuel costs; other operating expenses plus personal services and maintenance; depreciation, foreign exchange fluctuation on data servicing; rate base as of December 2015 and revenue from sales.

Napocor President Gladys C. Sta. Rita has asked the ERC to approve the application, which was dated Jan. 12, 2017, and for the regulator to direct the Power Sector Assets and Liabilities Management Corp. to remit monthly the actual universal charge collected from electricity consumers.

For 2015, Napocor has implemented a provisionally approved universal charge for missionary electrification of P927 million per month or equivalent to 15.44 centavos/kWh for a total of P11.135 bilion for the year. Including the cash incentive for renewable energy developers, the rate amounted to 15.61 centavos/kWh. The approval was extended for 2016. -- Victor V. Saulon

No comments:

Post a Comment