Sunday, March 2, 2014

Regulator asks Napocor, psalm to defer universal charge

Business Mirror02 Mar 2014
 
To alleviate the burden of consumers, the Energy Regulatory Commission (ERC) has ordered the National Power Corp. (Napocor/NPC), the Power Sector Assets and Liabilities Management Corp. (PSALM) and all distribution utilities to defer the collection of the so-called universal charge missionary electrification (UCME) rate equivalent to P0.381 per kilowatt-hour for six months.
In an order dated February 17, the ERC said the deferment of the UCME collection started in February until July of this year. Thereafter, the collection of the UCME shall commence in the August 2014 billing for all consumers.
It was Napocor that initiated the deferment of the UCME as a means to mitigate the impact of the simultaneous increases in electricity rates as pushed by the Department of Energy.
Napocor said the deferment of UCME collection could be done in a manner that would still allow Napocor to maintain a sound financial condition through the use of strict financial controls.
“The NPC [Napocor] has taken the initiative of reviewing its financial condition and has determined that it can support the budgetary requirements and ensure the viability of its operations in the NPC-SPUG [Small Power Utilities Group] areas for a maximum of six months if it defers the implementation of UCME recoveries,” Napocor said.
While the ERC has approved the deferment, it also ordered Napocor and PSALM to pursue the following:
 Ensure sufficient supply of fuel in SPUG areas;
 Napocor and PSALM should continue to release missionary electrification subsidy to new power producers and qualified third parties in SPUG areas;
 The deferment of the UCME should not prejudice the payment of the approved cash incentive benefits to qualified renewable-energy developers in missionary areas.

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