ERC lowers revenue ceiling for NGCP

By Alena Mae S. Flores November 8, 2023, 6:40 pm
from manilastandard.net

The Energy Regulatory Commission (ERC) announced Wednesday a lower allowable revenue for National Grid Corp. of the Philippines at P36.7 billion annually, or for a total of P183.491 billion for 2016 to 2020.

The amount is 52.7 percent lower than NGCP’s claims of P387.803 billion or an annual average of P77.56 billion for the regulatory period.

It said NGCP’s application is higher than the interim Maximum Annual Revenue (iMAR) of P51.47 billion for 2020 which was initially granted in March 2022.

The ERC, in an order dated Sept. 13, 2023 and released on Nov. 7, 2023, issued for public comments the preliminary results of its ongoing review of NGCP’s performance and operations for the said regulatory period.

The results are contained in the draft Partial Initial Determination attached to the order, Phase 1 of the Fourth Regulatory Period (4th RP).

ERC chairperson Monalisa Dimalanta said they have yet to finalize the determination but if there are no revisions, it could mean a possible price refund to consumers.

“Once the commission finalizes the determination, after NGCP and the public give comments on the findings, we will finalize the allowable revenues and revise the rates. If there are no revisions to the amounts under the initial determination, then refunds will be due. We are targeting to complete the process within the year,” Dimalanta said.

NGCP holds the 25-year concession to operate the country’s power transmission network.