Danessa Rivera (The Philippine Star)
- September 9, 2018 - 12:00am
MANILA, Philippines — The Energy
Regulatory Commission (ERC) is seeking industry inputs for the recovery of over
P1.6 billion from on-grid consumers sought by state-run National Power Corp.
(Napocor) for foreign exchange (forex) and operational costs incurred in the
delivery of power to missionary areas.
The ERC has published notices of
public hearings for Napocor’s 17th application for incremental currency
exchange rate adjustment (ICERA) and recovery charges under generation rate
adjustment mechanism (GRAM).
ICERA allows recovery of costs on
foreign exchange rate fluctuations that affect the costs of servicing foreign
currency debts and/or foreign exchange-related expenses such as insurance and
imported power plant or transmission parts.
GRAM seeks to recover deferred fuel
costs and power purchase costs incurred in providing power to Napocor-Small
Power Utilities Group (SPUG) areas.
Napocor is seeking P17.66 million in
deferred fuel costs, deferred debt service, operating expenses and the
corresponding carrying charges incurred from January to December 2016.
This proposed recovery will
translate to an additional charge of P0.0243 per kilowatt-hour (kwh) in the
monthly bills of end-consumers in missionary areas.
Meanwhile, in its GRAM application,
Napocor is seeking to recover P1.58 billion in deferred fuel costs incurred
from January to December 2016.
To recover this amount, it proposed
the imposition of additional charges of P1.0343 per kwh for off-grid customers
in Luzon, P0.8009 per kwh for those in the Visayas and P0.9862 per kwh for
those in Mindanao for two years.
Napocor said the GRAM would increase
its revenue “commensurate with its cost and ultimately reduce the burden of the
UCME on all electricity end-users.”
The UCME, or the universal charge
for missionary electrification, is collected from end-users to subsidize the
electrification of remote communities or areas not connected to the main
transmission grid.
In its notices, ERC is asking
industry stakeholders to file petitions for intervention, opposition or
comments for Napocor’s applications.
“All persons who have an interest in
the subject matter of the instant case may become a party by filing with the
Commission a petition for intervention at least five days prior to the initial
hearing,” it said.
ERC spokesperson Floresinda Digal
said parties given the status of intervenor can present witnesses as well as
cross-examine the other party’s witness.
“All other persons who may want
their views known to the Commission with the subject matter of the case may
file their opposition or comment at any stage of the proceedings,” the
regulator said.
Under the ERC Rules of Practice and
Procedure, only the applicant, petitioner, complainant, respondent or
intervenor are parties to a proceeding.
The ERC has set hearings for both
applications on Sept. 21 at its head office in Pasig City; Sept. 28 in Cebu
City; Oct. 3 in Davao City; and Oct. 10 at its head office.
Under the Electric Power Industry
Reform Act (EPIRA) of 2001, Napocor is mandated to provide power generation and
its associated power delivery systems in areas not connected to the
transmission system, specifically remote villages in Mindanao, Palawan and
Mindoro.
This is being done through
Napocor-SPUG, which incurs additional operating costs as a result of the
fluctuation in fuel prices used in power generation. It currently has 275 SPUG
plants.
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