Wednesday, June 21, 2017

Napocor seeks recovery of P13.3 B for off-grid electrification



 (The Philippine Star) |

MANILA, Philippines - The National Power Corp. (Napocor) is seeking to recover over P13 billion from consumers next year to cover for subsidies used in providing power in off-grid areas.
In a filing with the Energy Regulatory Commission (ERC), the state-run firm is seeking a provisional authority for the proposed universal charge for missionary electrification (UCME) amounting to P13.3 billion for 2018.
This will bear an equivalent rate of P0.153 per kilowatt-hour (kwh), an increase from the existing basic UCME rate of P0.1163 per kwh.
The proposed amount and rate will cover the projected fuel costs, operating expenses, demand and cash incentives for renewable energy developers (RE) in missionary areas next year.
“The proposed basic UCME rate of P0.153 per kwh inclusive of RE cash incentive for CY 2018 is necessary in order to cover the required subsidy requirements and at the same time, maintain a reliable and stable funding source for its operating costs requirements including a sufficient subsidy for payment to NPPs (new power producers) / QTPs ((qualified third parties) and RE developers,” Napocor said.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, UCME is collected from end-users which will be used for the electrification of remote communities or areas not connected to the main transmission grid.

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