| By Donnabelle Gatdula (The Philippine Star) Updated January 24, 2011 12:00 AM |
MANILA, Philippines - Electricity rates in Luzon are seen to go down by P2.38 per kilowatt-hour (kwh) this month, according to the Energy Regulatory Commission.
In a decision, the ERC said it has provisionally approved on Jan. 17, 2011 the Maximum Annual Revenue (MAR) of the National Grid Corp. of the Philippines (NGCP) for calendar year 2011 in the amount of P46.3 billion.
Given this provisionally approved revenue for NGCP, the indicative equivalent monthly transmission charge to its customers will go down by an overall average of P2.64 per kwh (P366.92 per kwh in 2010 vs. P364.27 per kwh in 2011).
On per grid basis, the average monthly reduction will be P2.38 per kwh for Luzon; nine centavos per kwh for Visayas and P6.61 per kwh for Mindanao.
With the ERC’s provisional approval, NGCP will implement the reduced transmission charge starting on its January 2011 billing.
The indicative average monthly transmission charge for 2011 amounting to P364.27/kwh is inclusive of the Performance Incentive Scheme reward (PIS), the power delivery service (PDS) charge, system operator charge and metering service provider charge.
It may be recalled that the ERC issued on Nov. 22, 2010 the final determination of the MAR of NGCP for the third regulatory period covering the calendar years from 2011 to 2015.
Based on this final determination issued by the ERC, on Dec. 16, 2010, NGCP filed its MAR application for 2011.
This application will still undergo public hearings, where all interested parties may participate, before the ERC issues its final decision on NGCP’s 2011 MAR.
NGCP, now being run by the SM group of companies’ Henry Sy Jr., is the concessionaire that operates the power transmission system of the country.
The transmission rates charged by NGCP are based on the internationally accepted rate-setting methodology called the Performance-Based Rate-Setting (PBR) scheme.
The ERC promulgated the Rules for Setting the Transmission Wheeling Rates (RTWR) to guide implementation of PBR in the transmission sector.
“We note that the PBR scheme adopted for the transmission sector is beginning to reflect a favorable impact in terms of price on electricity consumers brought about by the lower indicative transmission charges for 2011 and onwards,” ERC executive director Francis Saturnino Juan said.
Despite the rate cut, the regulator still expects NGCP to continue to provide better service to its customers.
“We expect that, with this ERC approval, NGCP will aim to be more efficient in its operations and aspire to deliver better quality power transmission services,” he said.
In a decision, the ERC said it has provisionally approved on Jan. 17, 2011 the Maximum Annual Revenue (MAR) of the National Grid Corp. of the Philippines (NGCP) for calendar year 2011 in the amount of P46.3 billion.
Given this provisionally approved revenue for NGCP, the indicative equivalent monthly transmission charge to its customers will go down by an overall average of P2.64 per kwh (P366.92 per kwh in 2010 vs. P364.27 per kwh in 2011).
On per grid basis, the average monthly reduction will be P2.38 per kwh for Luzon; nine centavos per kwh for Visayas and P6.61 per kwh for Mindanao.
With the ERC’s provisional approval, NGCP will implement the reduced transmission charge starting on its January 2011 billing.
The indicative average monthly transmission charge for 2011 amounting to P364.27/kwh is inclusive of the Performance Incentive Scheme reward (PIS), the power delivery service (PDS) charge, system operator charge and metering service provider charge.
It may be recalled that the ERC issued on Nov. 22, 2010 the final determination of the MAR of NGCP for the third regulatory period covering the calendar years from 2011 to 2015.
Based on this final determination issued by the ERC, on Dec. 16, 2010, NGCP filed its MAR application for 2011.
This application will still undergo public hearings, where all interested parties may participate, before the ERC issues its final decision on NGCP’s 2011 MAR.
NGCP, now being run by the SM group of companies’ Henry Sy Jr., is the concessionaire that operates the power transmission system of the country.
The transmission rates charged by NGCP are based on the internationally accepted rate-setting methodology called the Performance-Based Rate-Setting (PBR) scheme.
The ERC promulgated the Rules for Setting the Transmission Wheeling Rates (RTWR) to guide implementation of PBR in the transmission sector.
“We note that the PBR scheme adopted for the transmission sector is beginning to reflect a favorable impact in terms of price on electricity consumers brought about by the lower indicative transmission charges for 2011 and onwards,” ERC executive director Francis Saturnino Juan said.
Despite the rate cut, the regulator still expects NGCP to continue to provide better service to its customers.
“We expect that, with this ERC approval, NGCP will aim to be more efficient in its operations and aspire to deliver better quality power transmission services,” he said.
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