The Energy Regulatory Commission (ERC) said Monday it issued its final ruling on the Fourth Regulatory Period (RP) rate reset for the National Grid Corporation of the Philippines (NGCP).
“It took some time to write down the decision, the actual final determination, but the majority had already completed. For myself and the dissenting commissioners, we’ve also completed our opinion,” ERC chairperson Monalisa Dimalanta said on the sidelines of the Power Supply Procurement Toolkit launch.
The commission, in a majority decision by commissioners Alexis Lumbatan, Floresinda Baldo-Digal and Marko Romeo Fuentes on March 26, 2025, approved a P335.78 billion actual maximum allowable revenue (MAR) for NGCP’s Fourth RP rate reset period.
The decision used an “as spent” approach and adopted a weighted average cost of capital (WACC) of 11.33 percent. With NGCP’s interim MAR collections at P307 billion, a cost under-recovery of about P28.29 billion will lead to an increase in transmission charges.
The majority of the commissioners further resolved to set a seven-year recovery period, which translates into an average increase of P0.1013 per kilowatt-hour (kWh) in transmission charges to be collected over the next 84 months from the decision’s issuance.
The ERC said this amount covers a P0.0629 per kWh average increase in the basic transmission charge and an additional P0.0384 per kWh for the under-recovered portion of the increased MAR.
“I think the next billing period will already take effect…It cannot be implemented this July 25, so that’s the August billing period,” Dimalanta said.
The commission’s majority, during its 1,125th regular commission meeting (RCM), also resolved to make permanent NGCP’s MAR for 2015 at P43 million.
NGCP’s claim for a net performance incentive scheme (PIS) reward for 2014, amounting to P783.06 million under ERC Case No. 2014-155 RC, was also approved.
