NGCP eyes recovery of P3.14 M from Luzon customers

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval to recover a total of P3.14 million from Luzon customers incurred from the damage caused by Typhoon Ineng.

The grid operator filed an application with the Energy Regulatory Commission (ERC) for a provisional approval for the collection of the force majeure (FM) pass-through costs from customers in Luzon.

NGCP said the force majeure event capital expenditure, which cover the repair, restoration and rehabilitation of damaged transmission assets, amounted to P1.56 million.

Meanwhile, the recoverable value or the Net Fixed Asset Value (NFAV) of the assets destroyed by Typhoon Ineng is equivalent to P1.58 million.

In its application with the ERC, NGCP proposed to recover costs covering September 2016 to December 2020, or P0.055 per kilowatt (kwh) a month in 2016, and P0.002 per kwh a month from 2017 to 2020.

NGCP said its transmission assets and facilities in Luzon were damaged during the onslaught of Typhoon Ineng in August 2015, which caused widespread power interruption.

Typhoon Ineng is considered as an force majeure event which is defined as a “typhoon, storm, tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave or landslide.”