Napocor wants to adjust rates in missionary areas

Manila Standard Today
by Alena Mae S. Flores


State-owned National Power Corp. is seeking to recover P3.121 billion for its Small Power Utilities Group, which provides electricity to far-flung or missionary areas.


Napocor said in a statement it filed its application for the 7th Generation Rate Adjustment Mechanism and 7th Incremental Currency Exchange Rate Adjustment Friday before the Energy Regulatory Commission as part of its compliance to the directives of the power rate regulator.


Napocor aims to recover about P3.121 billion comprising of P3.075 billion for the 7th GRAM and P45.846 million for the 7th ICERA.


GRAM and ICERA are cost adjustment mechanisms that allow a delayed recovery by Napocor of its increased generation costs from operations and foreign exchange fluctuations.


“We hope our consuming public understands that we have to recover these costs because it will help us sustain our operations and continue providing our services to them. In turn, we will continue to implement improvements to make our services better, more reliable and more sustainable,” Napocor said.


It said annual recovery would be reduced to an average of P780 million due to a proposed spread.


Napocor said it planned to recover P3.121 billion in four years or 48 months that would translate into upward adjustments in the current rates in the missionary areas.