Napocor asks ERC for rate adjustment

The National Power Cooperation (Napocor) is set to file on Tuesday a petition before the Energy Regulatory Commission (ERC) to increase their rate to recover over P5 million shortfall in 2014.

“This will not increase the corporation’s rate upon filing and will still pass through the process of public hearing and the Commission’s evaluation and approval before implementation,” Napocor President Ma. Gladys Cruz-Sta. Rita said in a statement on Monday.

Napocor is proposing to recover P5,895,588,224.47 in shortfall for the year 2014, which translates to a true-up adjustment rate of P0.0788 kilowatt hour (kWh) per month.

Napocor explained that the huge shortfall is due to the very low basic Universal Charge for Missionary Electrification (UCME) of P0.0454 kWh which amounts to only P2.7 billion per year.

The said rate has been used since 2009. Under the provisional authority from the ERC, basic UCME is at P0.1163 kWh.

Sta. Rita said that an additional funding through the approval of the rate adjustment petition will ensure an uninterrupted electricity supply, as it would fully augment the funding requirements of Napocor, New Power Providers (NPPs), Qualified Third Parties (QTPs), and Renewable Energy Developers.

Napocor also pointed out that the filing is consistent and in accordance with ERC Resolution 21 series of 2011, “Amended Guidelines for the Setting and Approval of Electricity Generation Rates and Subsidies for Missionary Areas”. It stated that if the reconciliation results in Napocor’s Small Power Utilities Group (SPUG) having a deficiency, as confirmed by the ERC, it shall be entitled to an increase in the UCME to cover the shortfall.

Napocor added that the filing is one of two sources of the corporation’s funds as enumerated in the Electric Power Industry Reform Act (EPIRA) of 2001. Other source of funds is from energy sales collected from the electric cooperatives. -Trisha Macas/NB, GMA News