National Grid Corporation of the Philippines (NGCP) said Monday it will comply with the Energy Regulatory Commission (ERC) ruling on its rates reset for the Fourth Regulatory Period (RP) covering 2016 to 2022, which will lead to higher transmission charges starting in August.
“We will implement the decision of the ERC for the recovery of the 28 billion pesos this coming July 2025 billing period. The impact to the consumer is in August,” NGCP spokesperson Cynthia Perez-Alabanza said.
Alabanza SAID a new line item would appear on power bills to account for the under-recovery of NGCP’s rates.
“It will be called as the ‘2016 to 2020 under-recovery’ with a fixed rate of 0.03 pesos per kilowatt-hour and it will be implemented over a period of approximately 84 months, from July 2025 to June 2032, or until such time the full amount is recovered,” she said.
Alabanza also noted that NGCP is still studying the full impact of the decision, as several items were disallowed by the ERC.
The ERC previously approved NGCP’s cost recovery of about 28.29 billion pesos, equivalent to approximately 0.0384 pesos per kWh. It also approved an average increase in the basic transmission charge of 0.0629 pesos per kWh.
“We’re still in the process of assessing the disallowances. It is favorable in the sense that this is long overdue. As you know that this decision covers the period 2016 to 2022, so it’s backward and the process should have been started as early as 2014,” Alabanza said.
“So in that sense, we welcome the decision because it will give NGCP the chance to collect the under-recoveries considering the massive investments that have been infused into the transmission system since 2016,” she said.
She said they are awaiting the final determination for the Fifth Regulatory Period, which will cover 2023 to 2027.
“So we’re in the middle of that. And hopefully we’ll receive that before the regulatory period ends so that the sixth regulatory period will finally be normalized,” she said.
