NGCP seeks power rate hikes in next four years

MANILA, Philippines - Transmission service provider National Grid Corp. of the Philippines (NGCP) is seeking rate increases over a four-year period to cover repair and rehabilitation of facilities damaged by typhoons last year.

The Energy Regulatory Commission (ERC) said NGCP has filed an application to collect a total 2.56 centavos per kilowatt-hour from Luzon consumers, broken down into 0.51 centavos for 2012, 0.69 centavos for 2013, 0.68 centavos for 2014 and 0.68 centavos for 2015.

For Mindanao, the NGCP is pushing for a 9.6-centavo increase for this year, 6.42 centavos for 2013, 6.39 centavos for 2014 and 6.35 centavos for 2015 or a total of 28.78 centavos.

No rate increase is being sought for the Visayas despite damage inflicted by typhoon “Bebeng” on NGCP facilities in the region.

NGCP’s petition is classified under force majeur pass-through cost.

The new rates are intended to cover expenses for repair and rehabilitation efforts after typhoons Bebeng and “Juaning” and landslides in Mindanao last year.

“There is a need to realign NGCP’s capital expenditures projects to recover the cost incurred for the restoration, rehabilitation and repair of the damaged NGCP transmission assets and other related facilities,” NGCP said.

Typhoon Juaning devastated North Luzon, South Luzon and the Visayas in July 2011. “Due to its intensity, it caused damage to NGCP transmission assets and other facilities in the South Luzon area,” NGCP said.

Continuous rain in July last year caused landslides in Mindanao, particularly in Bukidnon, causing damage to NGCP facilities.