Consumers will experience slightly higher power rates with the Energy Regulatory Commission’s issuance of a resolution that allows the collection of subsidy to cover the budget shortfall in the universal charger-missionary electrification.
The ERC allowed state-run National Power Corp. to recover the P2.6-billion shortfall from the consumers
“All distribution utilities and the National Grid Corporation of the Philippines are hereby directed to collect from the consumers the UC-ME true-up rate of P0.0239 per kWh, on top of the existing UC-ME basic rate of P0.1561 per kWh, for a period of 12 months or until such time that the full amount shall have been collected, whichever comes earlier,” the ERC said in the Aug. 4 resolution.
The UC-ME funds the programs and projects of the NPC, which is mandated under the Electric Power Industry Reform Act of 2001 to perform the missionary electrification function through the Small Power Utilities Group.
The ERC asked the DUs to remit the funds to the Power Sector Assets and Liabilities Management Corp.which manages the assets and liabilities of NPC on or before the 15th day of the succeeding month.
The case stemmed from ERC Case No. 2013-191 RC on the petition of NPC for approval of the recovery from the universal charge of the shortfall in the missionary electrification subsidy for 2012 and the corresponding adjustment of the UC-ME, with prayer for the issuance of provisional authority.
It said that after due deliberation and evaluation, it granted final authority on NPC’s petition for the recovery of the shortfall in the UC-ME subsidy for 2012, subject to conditions.
The ERC directed PSALM to disburse the approved UC-ME recovery to NPC in accordance with the true-up adjustment mechanism.
“This notice is being issued due to apparent lack of material time in promulgating the official decision in the above-subject petition, which will be issued shortly,” the ERC said.
The DUs and electric cooperatives issued separate notices of the ERC resolution to inform consumers of the impact on power rates starting the August billing period.