NGCP to recover P15.6 million from Luzon and Mindanao consumers

ngcp-to-recover-p15-6-million-from-luzon-and-mindanao-consumers

The National Grid Corp. of the Philippines (NGCP) is looking to recover as much as P15.6 million from consumers in Luzon and Mindanao following the damage to its assets.

The NGCP filed an application with the Energy Regulatory Commission (ERC) for a provisional approval for the collection of the force majeure (FM) pass-through costs from customers in Luzon and in Mindanao.

The FM event capital expenditure and operating expenditure has amounted to P13.34 million covering repair, restoration and rehabilitation of damaged transmission assets, NGCP said.

Recoverable value or the Net Fixed Asset Value (NFAV) of assets destroyed by Typhoon Ineng is P2.18 million.

This totals to a P15.63 million in recovery amounts to be recovered from customers from September 2016 to December 2020.

The NGCP proposed to recover P0.23 per kilowatt (kW) a month in 2016, P0.01 per kW per month from 2017 to 2020 in Luzon.

Meanwhile, Mindanao customers will be charged P0.54 per kilowatt (kW) a month in 2016, P0.05 per kW a month from 2017 to 2019, and P0.04 per kW a month in 2020.

The Rules for the Setting of Transmission Wheeling Rates (RTWR) allows the NGCP to recover the costs for the repair, restoration and rehabilitation of its transmission assets, as well as other facilities damaged and sabotage incidents.

A force majeure event claim includes “typhoon, storm, tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave or landslide; or an act of public enemy, war (declared or undeclared), sabotage, blockade, revolution, riot, insurrection, civil commotion or any violent or threatening actions.”