By Lenie Lectura - January 31, 2017
THE National Power Corp. (NPC) is seeking regulatory approval to recover P1.11 billion by collecting P0.0134 per kilowatt-hour (kWh) for a year from electricity end-consumers.
The amount represents a collection shortfall in the Universal Charge Missionary Electrification (UCME) for 2015.
“The amount proposed for recovery is already an incurred cost of NPC, and within the reasonable cost of servicing the consumers in the missionary areas considering the nature of operation and the level of demand in the off-grid areas,” the NPC said in its 11-page application dated January 12. The application was posted on the web site of the Energy Regulatory Commission (ERC) on Tuesday.
NPC is the implementing agency for missionary electrification function, and shall be funded from the revenue from sales in missionary areas and from the UC to be collected from all electricity end-users.
“The total shortfall that NPC proposes to recover from the UCME is equivalent to P1,111,902,576.28. It has an equivalent proposed monthly rate of P0.0134/kWh based on the 12-month recovery period,” said the state firm in its application.
If approved, the proposed rates are to be collected over and above existing UCME rates.
“The recovery of shortfall within one year would be reasonable and timely in order for NPC to augment its financial requirements and to provide up-to-date recovery and adjustment of the ensuing years’ subsidy requirements,” it added.