State-run National Power Corp. is seeking approval from the Energy Regulatory Commission for a provisional approval of its basic universal charge for missionary electrification for 2020 amounting to P18.46 billion, or equivalent to P0.1920 per kilowatt-hour.
Napocor said in a petition to the ERC the proposed UCME basic rate of P0.1920 per kWh would result in an increase of P0.0740 per kWh from the provisionally approved rate of P0.1163 per kWh for Napocor-Small Power Utilities Group and new power players and qualified third parties and P0.0017 per kWh for renewable energy developers cash incentives.
The company said the proposed rate was necessary to cover the required subsidy requirements in off-grid areas and maintain stable funding source for its operating costs including payments to NPPs, QTPs and renewable energy developers.Alena Mae S. Flores
“There is a need to meet customer’s electricity requirements through the implementation of the proposed improvement of NPC’s generation function aimed to provide a sustainable development in the off-grid areas and be able to connect electricity to the unserved communities in the far-flung areas and be able to connect electricity to the unserved communities in the far-flung areas including those areas whose electric services were waived by electric cooperatives,” it said.