NGCP seeks to recover P327M from Luzon consumers
LA TRINIDAD, BENGUET – The National Grid Corporation of the Philippines (NGCP) is seeking to recover more than P327 million from Luzon power users for the repair of transmission lines damaged by Typhoon Nina in December 2016.
This was learned on June 18 during the regular meeting of the Sangguniang Panlalawigan of this province wherein the body through an earlier resolution, requested the NGCP to fully disclose its request for a provisional approval of its application to the Energy Regulatory Commission (ERC) for the collection of a force majeure pass-through costs by said typhoon.
Agnes dela Cruz, tariff design and billing manager of NGCP, informed the body their company has 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 (2018-2020).
Dela Cruz added their company is also asking the power regulator to declare Typhoon Nina which damaged transmission assets and facilities in December 2016, as force majeure event (FME).
As this developed, the provincial legislative body is bent on passing a resolution asking ERC not to grant NGCP’s application for the collection of the force majeure pass-through costs from its customers in Luzon.
Provincial Board Member Nestor Fongwan, Jr., decried NGCP’s inability to inform the province and consumers regarding its FME application to ERC.
Fongwan described the application of NGCP as “oppressive.” He pointed that Benguet was spared on the devastation brought by Typhoon Nina which was the strongest cyclone to hit Bicol in 10 years.
Howerver, Dela Cruz, who led other NGCP officials in explaining their company’s action, further stated: “NGCP needs to recover the actual expenses incurred for the repair, restoration and rehabilitation of the damaged transmission assets and other related facilities since the cost of the rehabilitation of the damaged assets to an FME is not included in the capital expenditure program of the NGCP,” Dela Cruz explained.
The NGCP official cited Section 3.3 ERC Resolution No. 26 Series of 2009 which provides that Regulated Entities affected by a Force Majeure or Fortuitous Events shall seek the confirmation of ERC for the implementation of capital expenditure projects arising from that event.
She said, NGCP incurred P134 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 Nina is equivalent to P193 million.
In total, NGCP is seeking approval to recover P327,520 million from Luzon customers from January 2018 to December 2020, or until the amount is fully recovered.
The grid operator is looking to charge an additional P0.83 per kilowatt a month in 2018, P0.86per kw a month in 2019, P0.90 per kw a month in 2020. In terms of per kilowatt-hour, this is equivalent to P0.0016 per kwh both for 2018 and 2019 to P0.0017 in 2020.
The NGGP senior official 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. PRIMO AGATEP, PNA / ABN
