The Market Monitor Minding the Nation's Business
The National Grid Corp. of the Philippines (NGCP) has raised its transmission rate for the July billing period following the Energy Regulatory Commission’s (ERC) approval of under-recoveries and its maximum allowable revenue (MAR).
The transmission charge rose to P0.5923 per kilowatt hour (kWh) from P0.4611 in June. While ancillary services rates dipped to P0.5872/kWh from P0.6182, the overall average transmission rate still climbed to P1.3233/kWh from P1.2113.
NGCP business and regulatory development head Julius Datingaling said the July rate already includes the ERC-approved MAR of P58.10 billion, to be collected over 84 months—an increase of P6.62 billion from the previous figure. Lower energy consumption between June and July also contributed to the adjustment.
The MAR is part of the 4th Regulatory Period Reset, covering 2016 to 2022. NGCP had sought to recover P552.19 billion in expenditures for new and upgraded transmission lines but was allowed to collect only P335.79 billion.
NGCP Assistant Vice President for public relations Cynthia Alabanza said the ERC decision was “not favorable” to the company and confirmed they are considering an appeal.