Napocor asks ERC to reconsider decision on new power rate scheme

The National Power Corp. (Napocor) will ask the Energy Regulatory Commission (ERC) to reconsider its decision not to grant a power rate increase through the so-called generation rate adjustment mechanism (GRAM).

Napocor president Rogelio Murga said the company is expected to file a motion for reconsideration to the ERC within the month.

Murga said the power firm needs the increase badly to fund its maturing obligations and operational expenses amid fears of looming power crisis in the country in the next few years.

The Napocor official told reporters that the motion will be filed to allow the state-owned power company to recover losses resulting from the earlier decision of the ERC disallowing certain charges to be included in Napocor’s earlier petition for a rate increase.

The motion, he said, will allow the company to have a higher rate than what was approved by the ERC.

Last week, the ERC issued a decision implementing higher generation charges for Napocor in the Visayas and Mindanao under the latter’s application through GRAM.

The ERC allowed Napocor to increase its rates in the Visayas to P2.8391 per kilowatthour (kwh) from P2.6737 and in Mindanao to P1.3219 per kwh from P1.2634 per kwh. On the other hand, the ERC reduced power rates in Luzon to P2.3887 per kwh from P2.4897 per kwh.

The approved rates, however, were lower than what Napocor filed in its petition last December.

Energy Secretary Vincent S. Perez, on the other hand, said he is optimistic that the ERC will allow Napocor to increase its rates as it would mean additional capital for the cash-strapped company.