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ERC rate reset to be released by October — budget sponsor
By JON VIKTOR D. CABUENAS,GMA Integrated NewsThe Energy Regulatory Commission (ERC) is now aiming to release a decision on the reset of power transmission rates by October, later than initially announced, the agency’s budget sponsor for 2024 said.
House Committee on Appropriations vice chairperson and Camarines Sur Representative Arnie Fuentebella said the agency is now crafting the decision on the regulatory rate reset of the National Grid Corporation of the Philippines (NGCP) which could be released within the week, or within next month.
“Sinusulat na po ‘yung desisyon and any time sana this week or bago po matapos po ang Oktubre ay lalabas na po ‘yung desisyon regarding po sa reset,” Fuentebella said during the House budget deliberations.
(The decision is being written and hopefully any time this week or before October ends, the decision on the reset will be released.)
The reset was started in October 2022
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This takes into consideration a number of factors such as the weighted average cost of capital (WACC), and the valuation of the regulatory asset base (RAB).
It also features the elimination of over recoveries and double compensations and redundant inflationary considerations, along with the enhanced criteria for the performance incentive scheme (PIS).
ERC chairperson Monalisa Dimalanta in May said the agency targets to issue the decision for the fourth regulatory period — covering the years 2016 to 2022 — by August. The fifth period covers the years 2023 to 2027.
“Actually we were excited already because supposedly last September 22 (it would be released),” Fuentebella said Monday.
“Since nire-review po ito nang maigi, so before po matapos ang Oktubre ay lalabas na po ‘yung first reset natin,” he added.
(Since it is being reviewed thoroughly, the first reset will be released before October ends.) — RSJ, GMA Integrated News