NGCP seeks higher revenue target of P45.3 B for 2016

By Danessa O. Rivera (The Philippine Star) | Updated October 6, 2015 - 12:00am

MANILA, Philippines - Grid operator National Grid Corp. of the Philippines (NGCP) is asking the Energy Regulatory Commission (ERC) to allow it to generate revenues of up to P45.3 billion in 2016.

In an application filed last week, NGCP proposed an interim maximum annual revenue (iMAR) for 2016 of P45.29 billion.

The proposed iMAR is higher than the approved P42.5 billion this year and will translate to an average monthly transmission rate of P312.51 per kilowatt hour (kWh).

For this year, monthly transmission was P308.67 per kWh.

The MAR refers to the maximum revenue the NGCP is allowed to earn from its transmission operations, the process of transporting electricity from power generators to distributors such as Manila Electric Co. (Meralco) and electric cooperatives, which in turn distribute the electricity to end-users.

In the same application, NGCP also sought the regulator’s approval to collect an interim net performance incentive (iNPI) for 2015 of P1.03 billion.

NGCP said the implementation of these rates would reduce the risk of under-recovery from consumers.

“The proposed iMAR 2016 and iNPI 2015 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,” it said in its application.

NGCP is a privately owned corporation in charge of operating, maintaining and developing the country’s power transmission network.

It is a joint venture between State Grid Corp. of China and Henry Sy Jr., the eldest son of mall magnate Henry Sy.

In 2008, it won a 25-year concession to run the country’s transmission assets after it took over the management of the country’s national transmission network from the National Transmission Co. source