MANILA, Philippines - Despite massive damage to transmission facilities caused by Super Typhoon Yolanda, the National Grid Corp. of the Philippines (NGCP) said it’s premature to consider raising transmission rates to recoup losses.
NGCP spokesperson Cynthia Alabanza said that while the firm is allowed to recover losses related to force majeure events (FMEs), it would rather focus first on restoration works.
“We aren’t even done with the restoration, so recovery of replacement cost is still very far off. Any discussion on rate impact is still very premature,†Alabanza said.
She said NGCP has one year to report to the Energy Regulatory Commission (ERC) and submit a detailed report on its FME-related costs.
“We are required by prevailing rules and regulations to report to the ERC our FME costs. We have one year to do this. But we have not recovered a single FME filing since we took over,†Alabanza said.
She stressed restoration efforts are on track and that NGCP is confident of meeting government’s target of restoring electricity in Yolanda-hit areas by Dec. 24.
In a separate advisory yesterday, NGCP special assistant to the president Joseph Dechavez said that the Milagro-Lemon-Biliran 69-kilovolt line was restored yesterday.
The Biliran Electric Cooperative, serving the whole island of Biliran in Eastern Visayas, has also been energized, NGCP said.
The cost of repairs and restoration of transmission and distribution lines has reached at least P6.5 billion, which may be covered by funds from the national government.
Earlier, President Aquino said the government was not keen on tapping the multibillion-peso Malampaya funds for the purpose.
Energy Secretary Carlos Jericho Petilla said early this month that any cost not covered by the national government would have to be passed on to consumers, but only after approval from the ERC.
Tacloban and some parts of Leyte and Samar are still without electricity more than a month after the onslaught of Yolanda.
Typhoon Yolanda ripped through Central Visayas last Nov. 8, killing more than 6,000 and damaging transmission and power facilities.