2 weeks ago
17
The National Power Corporation (NPC) has sought approval from the Energy Regulatory Commission (ERC) to recover costs through incremental currency exchange rate adjustment (ICERA).
A notice posted by the ERC showed that NPC has requested approval for the recovery of approximately ₱21 million, which would be reflected as a charge of ₱0.0384 per kilowatt-hour (kWh) for the Small Power Utilities Group (NPC-SPUG).
The ERC has also been requested to approve this matter promptly so that ICERA adjustments can begin within the next 12 months. As such, consumers in NPC-SPUG areas may face a slight tick in their electricity rates.
NPC’s adjustment is due to additional operating costs or savings driven by fluctuations in foreign exchange rates.
“In the performance of its missionary electrification function, NPC-SPUG incurs additional operating costs/savings as a result of the fluctuation of foreign exchange which affects the costs of servicing foreign currency debts (excluding interest) and/or foreign exchange-related expenses such as insurance and imported power plant/transmission parts,” it explained.
According to the ERC, NPC has filed the application covering the January to December 2022 billing period, while confirming that it has met ICERA’s monthly reporting requirements to support the calculated costs.
“If this application is approved as filed, the proposed rate [of ₱0.0384/kWh] shall be billed to island grid customers for 12 months,” the ERC added.
Furthermore, NPC is seeking a continued collection of ICERA even in areas that are currently serviced by private-sector players.
The ERC is set to hold a procedural process before approving NPC’s cost recovery through a compliance check, a series of expository presentations, and a pre-trial conference, among others.
