ERC eyes phased power rate hike in off-grid areas

By Alena Mae S. Flores – April 14, 2024, 8:45 pm
from manilastandard.net

The Energy Regulatory Commission (ERC) is studying the staggered implementation of the National Power Corp.’s plan (NPC) to increase power rates in off-grid areas by more than P1 per kilowatt-hour.

“I’m sure NPC is aware that the commission’s ruling on their petition may include a modified mode of implementation, such as staggered or phased-in increases. This will all be a part of the ERC evaluation,” ERC chairperson Monalisa Dimalanta said.

The ERC has been conducting nationwide hearings to discuss the NPC’s petition for the revised subsidized approved generation rates (SAGR) for consumers residing in off-grid areas.

The ERC said the hearings aim to provide an opportunity for the general public to ask questions, raise concerns and clarifications on the petition to adjust the SAGR and for the ERC to listen to the concerns of residents in remote and isolated areas served by the NPC Small Power Utilities Group (SPUG).

The NPC said during the hearings that aside from the different economic parameters used in its proposed reduction in the universal charge on missionary electrification (UCME), the application highlights the proposed increase in SAGR which would have an impact on electricity consumers being served by NPC’s SPUG.

ERC commissioner Catherine Maceda said the regulator was thoroughly evaluating the application and would carefully study the concerns raised by consumers.

She underscored the need to look into NPC’s basis on consumers’ capacity to pay which was used in the determination of the SAGR rate.