NGCP eyes to recover P35M from Luzon end-users

NGCP eyes to recover P35M from Luzon end-users

The National Grid Corporation of the Philippines (NGCP) is looking to recover around P35 million from its three years worth of repairs of transmission lines affected by Typhoon Karen and Lawin in 2016 from its Luzon end-users.

In an application filed to the Energy Regulatory Commisson, the NGCP sought for a provisional approval for the collection of the force majeure (FM) pass-through costs from its customers in Luzon.

NGCP also asked for ERC to declare the two typhoons that damaged its transmission assets and facilities in the region in October 2016 as force major majeure events (FMEs).

“Due to heavy rains and gusty winds brought by Typhoons Karen and Lawin, NGCP’s transmission assets and other related facilities in Luzon were damaged causing widespread power interruption over the area,” NGCP said.

The company said that it incurred P29.68 million in capital expenditure and operating expenditures for the immediate repair, restoration and rehabilitation of the damaged transmission assets and other related facilities.

NGCP also has a recoverable value or the Net Fixed Asset Value (NFAV) of assets destroyed by Typhoon Nona worth P4.93 million.

NGCP is seeking to recover a total of P34.61 million that will be recovered from Luzon customers from October 2017 to December 2020 or until the full recovery of the said amount.

The grid operator is looking to charge P0.0006 per kwh im 2017 and P0.0002 from 2018 to 2020.

The company said that the immediate recovery of expenses incurred for the repair, restoration and rehabilitation of damage transmission assets and others is important for the continuous provision of transmission service to the grid customers.

“In addition, the timely implementation of the FM Pass-Through Amounts will allow the equal or even spread of the increases or decreases in tariffs from the initial implementation of the recovery of the cost,” it said.

Under the Rules for the Setting of Transmission Wheeling Rates (RTWR), NGCP is allowed recover the cost it incurred for the repair, restoration and rehabilitation of its transmission assets and other related facilities damaged by the FMEs including typhoons.

Comments

comments




%d bloggers like this: