ERC okays new rates for Napocor
The Philippine Star 07/17/2006
The Energy Regulatory Commission (ERC) has approved new rates for the National Power Corp. (Napocor) to reflect the power firm’s application for generation rate adjustment mechanism (GRAM) and incremental currency exchange rate adjustment (ICERA) for the period April 2005 to October 2005.
Based on the ERC approval, Napocor could recover from its customers new GRAM rate of P0.4170 centavos per kilowatthour (kWh), lower by five centavos from P0.4175 centavos applied by the state-run power company. This new GRAM rate in Luzon will be recouped by Napocor within nine months.
In the Visayas, ERC approved a lower rate of P0.3203 centavos GRAM recovery. Napocor applied for P0.3597 per kWh increase in this region. The ERC allowed Napocor to recover this rate in the Visayas for five months.
For the Mindanao grid, ERC allowed Napocor to recover under GRAM of P0.5048 per kWh for a recoup period of 16 months. This is lower than the P0.52.17 per kWh applied for by Napocor.
For the ICERA, the ERC approved Napocor’s deferred accounting adjustment (DAA) for debt service and operational expenses of P0.5719 per kWh in Luzon, P0.1784 per kWh in Visayas and negative P0.0155 in Mindanao. The ICERA will be recovered within eight to 24 months.
Early last month, the ERC, instead of granting automatic implementation, extended for another 45 days the resolution of Napocor’s GRAM and ICERA for the period covering April 26 to October 25 2005.
In separate rulings, however, the ERC argued that the 45-day resolution deadline set by the implementing rules should not apply since section 11 of the same rules provide only for a three-month recovery period.
But Napocor had filed for a seven-month recovery, which the ERC said would need more time to resolve. Thus, ERC extended the deadline of June 2, 2006.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, the Napocor is allowed to recover its costs incurred from operations and fluctuating currency from its customers. Before Napocor and DUs were allowed to automatically recover these costs and the ERC would just review it after.
Based on the current set-up, the power generators and distributors should apply quarterly for the recovery of GRAM and ICERA.
The Energy Regulatory Commission (ERC) has approved new rates for the National Power Corp. (Napocor) to reflect the power firm’s application for generation rate adjustment mechanism (GRAM) and incremental currency exchange rate adjustment (ICERA) for the period April 2005 to October 2005.
Based on the ERC approval, Napocor could recover from its customers new GRAM rate of P0.4170 centavos per kilowatthour (kWh), lower by five centavos from P0.4175 centavos applied by the state-run power company. This new GRAM rate in Luzon will be recouped by Napocor within nine months.
In the Visayas, ERC approved a lower rate of P0.3203 centavos GRAM recovery. Napocor applied for P0.3597 per kWh increase in this region. The ERC allowed Napocor to recover this rate in the Visayas for five months.
For the Mindanao grid, ERC allowed Napocor to recover under GRAM of P0.5048 per kWh for a recoup period of 16 months. This is lower than the P0.52.17 per kWh applied for by Napocor.
For the ICERA, the ERC approved Napocor’s deferred accounting adjustment (DAA) for debt service and operational expenses of P0.5719 per kWh in Luzon, P0.1784 per kWh in Visayas and negative P0.0155 in Mindanao. The ICERA will be recovered within eight to 24 months.
Early last month, the ERC, instead of granting automatic implementation, extended for another 45 days the resolution of Napocor’s GRAM and ICERA for the period covering April 26 to October 25 2005.
In separate rulings, however, the ERC argued that the 45-day resolution deadline set by the implementing rules should not apply since section 11 of the same rules provide only for a three-month recovery period.
But Napocor had filed for a seven-month recovery, which the ERC said would need more time to resolve. Thus, ERC extended the deadline of June 2, 2006.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, the Napocor is allowed to recover its costs incurred from operations and fluctuating currency from its customers. Before Napocor and DUs were allowed to automatically recover these costs and the ERC would just review it after.
Based on the current set-up, the power generators and distributors should apply quarterly for the recovery of GRAM and ICERA.
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