ERC targets rate reset by August

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The Energy Regulatory Commission (ERC) intends to release an order within the next quarter to reset power transmission rates.

In a report by the Philippine Star, ERC chairperson Monalisa Dimalanta said that the commission aims to finalize its decision on the review of the fourth regulatory rate reset of the National Grid Corporation of the Philippines (NGCP) by August.

After the issuance of the reset order, a new transmission rate will take effect by the next billing cycle.

Dimalanta mentioned that they are also working on the fifth regulatory period which will likely start by the first quarter of 2024.

The fourth regulatory period spans from 2016 to 2022, while the fifth regulatory period encompasses the period from 2023 to 2027.

ERC’s last transmission reset covered the five-year regulatory period from 2010 to 2015.

The reset is a regulatory review aimed at determining the ongoing validity and alignment of NGCP’s approved revenues, which were established seven years ago. These revenues have been charged to customers, and the reset ensures they remain appropriate and reflective of current costs.

During the reset process, the ERC carefully examines NGCP’s expenditure items and other factors to ensure that only justified and reasonable costs are passed on to consumers.

The transmission wheeling rate, an item listed on monthly electric bills, is a direct fee that electricity consumers pay for utilizing transmission facilities essential for delivering electricity to homes, industries, and businesses.

Meanwhile, in an earlier Senate Committee on Energy hearing, Dimalanta mentioned that the ERC is currently exploring possibilities to impose stricter penalties for project delays.