Monday, October 24, 2016

NGCP seeks to recover P15.6 M from Luzon, Mindanao customers



By Danessa Rivera (The Philippine Star) | Updated October 21, 2016 - 12:00am

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP) is seeking to recover as much as P15.6 million from consumers in Luzon and Mindanao after its assets were damaged by Typhoon Lando and sabotage incidents.
The grid operator filed an application with the Energy Regulatory Commission (ERC) for a provisional approval for the collection of the force majeure (FM) pass-through costs from customers in Luzon and in Mindanao.
NGCP said the FM capital and operating expenditure amounted to P13.45 million. These items cover the repair, restoration and rehabilitation of damaged transmission assets.
Meanwhile, the recoverable value or the net fixed asset value of the assets destroyed by Typhoon Ineng is equivalent to P2.18 million.
The recovery amounts to P15.63 million in total, which will be recovered from Luzon and Mindanao customers from September 2016 to December 2020.
In its application with the ERC, NGCP proposed to recover P0.23 per kilowatt (kw) a month in 2016 and P0.01 per kw a month from 2017 to 2020 in Luzon.
For Mindanao, it seeks to charge P0.54 per kw a month in 2016, P0.05 per kw a month from 2017 to 2019 and P0.04 per kw a month in 2020.
Under the Rules for the Setting of Transmission Wheeling Rates, NGCP is allowed to recover the cost it incurred for the repair, restoration and rehabilitation of its transmission assets and other related facilities damaged by the FMs Lando in Luzon and sabotage incidents in Mindanao.
NGCP’s assets were damaged during the onslaught of Lando from Oct. 14 to 21, 2015 and because of sabotage incidents which occurred in Pikit, Cotabato on Oct. 9, 2015 and in Marinaut, Marawi City on Oct. 29, 2015.
Under the rules, a FM event claim covers “typhoon, storm, tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave or landslide; or an act of public enemy, war (declared or undeclared), sabotage, blockade, revolution, riot, insurrection, civil commotion or any violent or threatening actions.”

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