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NGCP seeks to recover P193 M from Visayas consumers

Danessa Rivera (The Philippine Star) - July 16, 2018 - 12:00am

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking to recover over P193 million from electricity end-users in Visayas in three years for the repair of transmission lines damaged by a 6.5-magnitude earthquake last year.

In an application with the Energy Regulatory Commission (ERC), NGCP is asking for a provisional approval for the collection of the force majeure (FM) pass-through costs from customers in Visayas.

It is also asking the power regulator to declare the 6.5-magnitude earthquake as force majeure event after it damaged its transmission assets and facilities in the region in July 2017.

“Immediately after the devastation of the earthquake, NGCP started the repair, restoration and rehabilitation of its damaged transmission assets and other related facilities in order to restore transmission service to its customers and the public. As a result, NGCP incurred additional costs for the repair, restoration and rehabilitation of the said damaged transmission assets,” the grid operator said.

NGCP said it incurred P154.85 million in capital expenditure and operating expenditures to cover the immediate repair, restoration and rehabilitation of damaged transmission assets and other related facilities.
Meanwhile, the recoverable value or the net fixed asset value of the assets destroyed by earthquake is equivalent to P39.29 million.

In total, NGCP is seeking approval to recover P193.83 million from Luzon customers from August 2018 to December 2020, or until the amount is fully recovered.

The grid operator is looking to charge an additional P7.28 per kilowatt (kw) a month this year, P3.21 per kw a month in 2019, and P3.40 per kw a month in 2020.

In terms of per kilowatt-hour (kwh), this is equivalent to P0.015 per kwh in 2018, P0.0067 per kwh in 2019 and P0.0072 in 2020.

“The proposed FM pass-through amounts to be collected from the Visayas customers starting August 2018 billing month or until such time that the amounts incurred are fully recovered,” NGCP said.

NATIONAL GRID CORP. OF THE PHILIPPINES
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