Regulator to hold hearings on petition to raise off-grid power rates

By Alena Mae S. Flores – January 30, 2024, 8:05 pm
from manilastandard.net

The Energy Regulatory Commission (ERC) said it will hold public hearings in various parts of the country on the petition filed by the National Power Corp. (NPC) to raise the rates to be paid by consumers in off-grid areas by more than P1 per kilowatt-hour.

The NPC filed an application with the ERC on Nov. 28, 2023 to update its subsidized approved generation rates (SAGR) with the developments in the Small Power Utilities Group areas from 2003 to 2022.

These developments include fuel cost and energy sales increase, universal charge for missionary electrification requirements, expansion of electrification services and collection efficiency.

The NPC said that in the past 20 years, the economic and socio-economic parameters that were used on fuel prices, true cost of generation rate (TCGR), consumer price index and inflation showed that the cost of producing electricity significantly increased.

It asked ERC to approve a new residential rate amounting to P8.5982 per kWh and a commercial/industrial rate of P10.04 per kWh for Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon and Tablas.

This represents an increase of P1.2082 per kWh for residential consumers from the approved rate of P7.39 per kWh for 2024.

Meanwhile, the NPC proposed a residential rate of P9.7068 per kWh and a commercial/industrial rate of P11.0128 per kWh for Camotes, Siquijor and Bantayan.

This is P1.4486 per kWh higher than the previously approved rate of P8.2582 per kWh for residential consumers in the said areas.

The NPC also asked for approval to increase the residential rates in Basilan, Sulu and Tawi-Tawi to P8.4465 per kWh from P7.0215 per kWh and set a commercial/industrial rate of P9.6106 per kWh.

It said it adopted a different rate for residential and commercial/industrial customers due to the difference on the nature, usage and consumption of power between the customer classes.

It said that while ERC recently approved the adjustment in the SAGR, it was merely to implement the excise tax pursuant to the TRAIN Law.

“Thus, the current SAGR is still not at the optimized level in order for the petitioner NPC to effectively operate in the missionary areas,” NPC said in its application.