NGCP files P45-B MAR for 2016

Business Mirror
by Lenie Lectura - October 5, 2015

THE National Grid Corp. of the Philippines (NGCP) has filed an application for the approval of an interim Maximum Allowable Revenue (MAR) in 2016 in the amount of P45.287 billion.

MAR limits the amount NGCP can charge distribution utilities (DUs) and electric cooperatives (ECs) for the use of NGCP’s transmission facilities.

The NGCP is responsible for dispatching electricity from the power plants via its transmission facilities all the way to the DUs and ECs.

In a filing with the Energy Regulatory Commission (ERC), the grid operator asked the regulator to immediately issue an order provisionally approving the collection of MAR in the amount of P45.287 billion.

“The immediate implementation is necessary to reduce, if not eliminate, the risk of under-recovery which is substantial to NGCP,” the NGCP said in its 10-page application.

The proposed MAR for 2016 is higher than the approved MAR in 2015.

The NGCP’s approved MAR in 2015 stood at P43.079 billion. This translates to an indicative transmission charge of P0.6161 per kilowatt-hour. In the same application, the NGCP asked the ERC to approve its proposed interim Net Performance Incentive (iNPI) for 2015 in the amount of P1.029 billion.

The MAR and iNPI form part of the annual verification and adjustment of tariffs allowed under Republic Act 9136, or the Electric Power Industry Reform Act.

“The proposed interim MAR and iNPI were designed and developed to determine fair and reasonable interim transmission rates that will serve the public interest and convenience, and signal the efficient utilization of transmission facilities that will ultimately redound to the best interest and benefit of the public,” NGCP said.

NGCP is the private company that operates, maintains and develops the country’s transmission network.

NGCP’s transmission charges are for power-delivery service, system operations and metering services. These charges recover the cost of conveying electricity to or from the grid, the cost of system-operation services and the cost-metering facilities, respectively. source