NGCP seeks to recover P35 M from Luzon consumers

For repair of damaged transmission lines

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking to recover nearly P35 million from Luzon power users for the repair of transmission lines damaged by Typhoons Karen and Lawin last year.

NGCP filed an application with the Energy Regulatory Commission (ERC) for a provisional approval for the collection of the force majeure pass-through costs from customers in Luzon for over three years.

It is also asking the power regulator to declare Typhoons Karen and Lawin, which damaged transmission assets and facilities in October 2016, as force majeure events (FMEs).

“Due to heavy rains and gusty winds brought by Typhoons Karen and Lawin, NGCP’s transmission assets and other related facilities in Luzon were damaged, causing widespread power interruption over the area,” NGCP said.

NGCP said it incurred P29.68 million in capital and operating expenditures to cover the immediate repair, restoration and rehabilitation of damaged transmission assets and other related facilities.

Meanwhile, the recoverable value or the net fixed asset value (NFAV) of the assets destroyed by Typhoon Nona is equivalent to P4.93 million.

In total, NGCP is seeking approval to recover P34.61 million from Luzon customers from October 2017 to December 2020, or until the amount is fully recovered.

The grid operator is looking to charge an additional P0.30 per kilowatt a month in 2017, P0.08 per kw a month in 2018, P0.09 per kw a month in 2019 and in 2020. In terms of per kilowatt-hour, this is equivalent to P0.0006 per kwh in 2017 and P0.0002 from 2018 to 2020.

NGGP said it needs to immediately recover the actual expenses incurred for the repair, restoration and rehabilitation of the damaged transmission assets and other related facilities to allow the continuous provision of transmission service to the grid customers.

“In addition, the timely implementation of the FM pass-through amounts will allow the equal or even spread of the increases or decreases in tariffs from the initial implementation of the recovery of the cost,” it said.

Under the Rules for the Setting of Transmission Wheeling Rates, NGCP is allowed recover the cost it incurred for the repair, restoration and rehabilitation of its transmission assets and other related facilities damaged by the FMEs, including typhoons.