NAPOCOR seeks approval of higher subsidized rates

MANILA, Philippines — The National Power Corp. (Napocor) is seeking the approval of the Energy Regulatory Commission (ERC) for an increase in the rates to be paid by consumers in off-grid areas in the country.

Napocor has proposed a new set of subsidized approved generation rates (SAGR) for the Small Power Utilities Group (SPUG) areas in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Tablas, Camotes, Siquijor, Bantayan, Basilan, Sulu, and Tawi-Tawi.

As mandated by the Electric Power Industry Reform Act of 2001, Napocor is tasked to provide electricity and associated power components in off-grid islands and communities in the country.

It is in this capacity that the corporation operates over 280 SPUG plants serving 125 islands across the country.

The SPUG plays a crucial role in providing basic and reliable power services to rural residents and community facilities in far-flung and unviable areas.

According to the ERC, approved SAGRs for 2024 following adjustments due to excise on fuel were P7.39 per kilowatt-hour (kWh) for Marinduque, Palawan, Catanduanes, Masbate, Romblon, and Tablas; P8.2582 per kWh Camotes, Siquijor, and Bantayan; and P7.0215 per kWh in Basilan, Sulu, and Tawi-Tawi.

According to the ERC, the current effective SAGR being implemented are based on approval granted by the commission in 2023.

Napocor’s proposed new SAGR in the areas of Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, and Tablas, meanwhile, were P8.5982 per kWh for residential and P10.0488 for commercial/industrial.

In Camotes, Siquijor, and Bantayan, the proposed new SAGR by Napocor were P9.7068 per kWh for residential and P11.0128 for commercial/industrial consumers.

Napocor’s proposed new SAGR for Basilan, Sulu, and Tawi-Tawi is P8.4465 per kWh for residential and P9.6106 per kWh for commercial/industrial.

The ERC is slated to hold public hearings in various parts of the country on Napocor’s petition seeking the approval of the proposed new rates.

Hearings will be conducted from March to October this year.