Consumers face power rate hike over Napocor's P2.6-B recovery bid

Consumers are facing an increase in their electric bills in the coming months, after the Energy Regulatory Commission (ERC) approved the petition of the National Power Corp. (Napocor) to recover P2.6 billion worth of “shortfall” in rural electrification subsidy back in 2012.

In a resolution dated August 4, 2022, the ERC resolved to grant final authority on the Napocor’s petition for the recovery of shortfall in the Universal Charge-Missionary Electrification (UC-ME) Subsidy for 2012 amounting to P2,606,208,364.83 with an equivalent rate of P0.0239 per kilowatt-hour (/kWh).

With this, the regulatory body directed all distribution utilities (DUs) and the National Grid Corp. of the Philippines to “collect from the consumers the UC-ME true-up rate of P0.0239/kWh, on top of the existing UC-ME basic rate of P0.1561/kWh, for a period of 12 months or until such time that the full amount shall have been collected.”

The DUs and the NGCP are also directed to remit the amount to be recovered to the Power Sector Assets and Liabilities Corp. (PSALM) on or before the 15th day of the succeeding month.

Also, the ERC ordered the PSALM to disburse to the Napocor the approved UC-ME recovery in accordance with the true-up adjustment mechanism.

On the other hand, the ERC ordered the PSALM to monitor and report the progress in collection and disbursement of the true-up and basic UC-ME in order to distinguish the cash flow of each of the approved UC-ME rates. —LBG, GMA News