Napocor seeks rate adjustment

MANILA, Philippines - The National Power Corp. (Napocor) will file today an application seeking regulatory approval for a higher universal charge (UC) to recover a shortfall of nearly P6 billion in the missionary electrification subsidy for 2014.

It also started implementing measures to conserve water in its facilities to ensure power supply from the Agus hydropower plants for the May 2016 elections.

Napocor president Ma. Gladys Cruz-Sta. Rita said the petition is a regular application based on the actual expenses as against the actual approved revenue and sales from missionary areas and the universal charge for missionary electrification (UCME), respectively.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, UCME is collected from end-users which will be used for the electrification of remote communities or areas not connected to the main transmission grid.

The state-owned agency is proposing to recover P5.896 billion in shortfall for the year 2014, translating to a true-up adjustment rate of P0.0788 kilowatt-hour (kwh) per month.

In its petition, Napocor explained the huge shortfall is due to the very low basic UCME of P0.0454 kwh which translates to only P2.7 billion per year.

The increase in UC will go through public hearing and the Commission’s evaluation and approval before implementation, Sta. Rita noted.

Under the provisional authority from the Energy Regulatory Commission, basic UCME is already at P0.1163 per kwh.

Napocor said the proposal for a higher UCME is one of two sources of its funds under the EPIRA. Other source of funds is from energy sales collected from electric cooperatives.

The petition is also consistent and in accordance with ERC Resolution 21, or the “Amended Guidelines for the Setting and Approval of Electricity Generation Rates and Subsidies for Missionary Areas.”

The additional funding through the approval of this instant petition will ensure an uninterrupted electricity supply as this would fully augment the funding requirements of Napocor, new power providers (NPPs), qualified third parties (QTPs) and renewable energy developers, Sta. Rita noted.

Meanwhile, Napocor said has started conserving water supply in Lake Lanao due to the low water inflow, as part of its measures to mitigate the effects of El Niño phenomenon, particularly on power supply.

With the forthcoming national elections on May 9, it is mandated to have all generating power plant units running one week before and after the election.

“Due to this, the Lake Lanao reservoir operation is now on conservation mode by reducing the outflow/discharge of water from the lake, consequently, reducing the total generation of the Agus hydropower electric plant complex,” Sta. Rita said.

The measure will help deter the fast declining water elevation of Lake Lanao and ensure that enough power will be generated by the Agus plants during the election period and to have a comfortable operating year-end Lake Lanao water elevation, she added.

Napocor’s Mindanao Generation Group vice president Dadelio Cruz said the elevation of Lake Lanao is 699.633 meters above mean average sea level as of Jan. 21.

The level, he said, is only 3.30 centimeters above the 2016 seasonal drawdown limit of 699.60 meters and 48.3 centimeters above the minimum operating level of 699.15 meters.

State weather agency Philippine Atmospheric Geophysical and Astronomical Services Administration (Pagasa) said the local impact of El Nino will be felt until end of April to early June 2016. – Roman Efren Lazaro