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Brix Lelis - The Philippine Star
December 17, 2025 | 12:00am
“If we are able to issue the decision on the fifth regulatory period (5RP) by next year, there will be at least two years of the 5RP that are based on forecasted costs or expenses,” ERC chairperson and CEO Francis Saturnino Juan said.
The STAR / Miguel de Guzman, file
MANILA, Philippines — The Energy Regulatory Commission (ERC) is confident that the final decision on the National Grid Corp. of the Philippines’ (NGCP) rate reset will be issued next year.
“If we are able to issue the decision on the fifth regulatory period (5RP) by next year, there will be at least two years of the 5RP that are based on forecasted costs or expenses,” ERC chairperson and CEO Francis Saturnino Juan said.
This comes after the NGCP sought approval of its maximum allowable revenue (MAR) for 5RP spanning 2023 to 2027.
MAR represents the maximum amount that NGCP is permitted to collect annually to recover its investments.
“We are currently in the process of reviewing and evaluating NGCP’s rate reset filing for the 5RP. Our objective is to keep the reset as up-to-date as possible so that we can achieve the objective of performance-based regulation,” Juan said.
The rate reset process sets the rules and parameters for the investment, operations and pricing mechanisms of the NGCP for a five-year period to determine how much should be charged to consumers.
“This is where cost recovery comes in because whatever return we allow… will form the basis for the MAR that NGCP will be allowed to charge for the years in question,” the ERC chief said.
A privately backed corporation, the NGCP is the country’s sole transmission operator that is responsible for the operations, maintenance and development of the state-owned power grid.
In April, the regulator completed the NGCP’s 4RP, directing the grid operator to collect the computed total under-recovery of P28.3 billion from consumers over a seven-year period.
The cost recovery translates to an increase of P0.0384 per kilowatt-hour in transmission charges, which will be collected over the next 84 months or until the full amount has been recovered.
