NGCP seeks nod to recover typhoon-related expenses
BY LENIE LECTURA – JANUARY 3, 2023
from Business Mirror
The National Grid Corporation of the Philippines (NGCP) is asking regulators to recover P177.27 million which it spent for the repair, restoration and rehabilitation of transmission assets and facilities damaged by Typhoon Odette in Visayas and Mindanao in December 2021.
“NGCP seeks to immediately recover the actual expenses incurred for the repair and restoration of the damaged transmission assets and facilities damaged by FME Typhoon Odette required significant capital infusion, the recovery of which should be allowed immediately in order to avoid any financial strain in the operation of NGCP and to allow the continuous provision of transmission services to the grid customers,” the grid operator said in its 10-page application filed with the Energy Regulatory Commission (ERC).
The amount consists of P83,368,402.99 in in Force Majeure Events (FME) capital expenditures (capex),P48,514,284.35 FME operational expenses (opex) and P45,391,600.93 in net fixed asset value of the transmission facilities (NFAV).
If approved, additional network charges for Luzon and Mindanao will be collected starting January until December 2027, or until such time that the amounts incurred are fully recovered.
In particular, NGCP proposed to collect P2.5119 per kilowatt hour (kWh) in 2023, P0.4249 per kWh in 2024, P0.3780 per kWh in 2025, P0.3466 per kWh in 2026, and P0.3214 per kWh in 2027 in Visayas.
For Mindanao, collection will amount to P0.2512 per kWh for 2023.
NGCP asked the ERC that it immediately grant provisional authority to implement and bill the FM pass through amounts to Visayas and Mindanao customers starting the billing month of January 2023 to December 2027, or until such time that the amounts incurred are fully recovered, it said in its application.
The timely implementation of the FM pass-through amounts will allow an even spread of the increases in tariffs from the initial implementation of the recovery of the cost, it added.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and Vice Chairman of the Board Henry Sy, Jr. and Co-Vice Chairman Robert Coyiuto Jr. It is the sole operating asset of Synergy Grid and Development Philippines Inc.
