ERC denies Napocor motion on foreign exchange charges

The Energy Regulatory Commission (ERC) has denied the National Power Corp.’s (Napocor) motion for partial reconsideration regarding the implementation of the incremental currency exchange rate adjustment (ICERA).

In an order dated March 26, the ERC said that it denied Napocor’s motion for lack of merit.

"The Commission believes that the ICERA is advantageous to consumers because they will enjoy the benefit of having a stable rate for at least one quarter and any amount that would be recovered or collected from them shall be subject to verification and confirmation," ERC said.

Likewise, the ERC set parameters related to the generation rate adjustment mechanism (GRAM) and the ICERA.

It stated that the base rate for ICERA should be the foreign exchange (forex) charge for February this year placed at P0.2506 per kilowatthour (kWh).

For the base year, the forex charge was rebased to test year levels by using the average US and Japanese yen exchange rates for the year 2000.

The ERC said that the ICERA will be implemented quarterly. Starting March, the Napocor will use a base rate of P0.2506 per kWh. – Ted Torres