TRANSMISSION tariffs are set to be lowered after the Energy Regulatory Commission (ERC) released late Monday an order to the National Grid Corp. of the Philippines (NGCP) to adjust its interim Maximum Annual Revenue (iMAR) level for 2020.
The ERC ordered as an interim measure that the privately-owned company cap iMAR at P47.05 billion this year, which would bring down transmission charges by P0.0413 to P0.4701 per kilowatt-hour (kWh) from P0.5114/kWh in 2019.
“This brings a favorable rate impact on the consumers as this will mean a lower Transmission Charge for this year,” ERC Chairperson and Chief Executive Officer Agnes Vicenta S. Torres-Devanadera said in a statement.
ERC noted that the iMAR is lower than the P58.8 billion in revenue proposed by NGCP. The company, which operates the state-owned grid, last adjusted its Maximum Annual Revenue in 2016.
The ERC weighed two factors in its decision: unplanned capital expenditure identified as 100% completed, considering that these assets are in operation in the transmission system; and Energy Projects of National Significance (EPNS) considered priority projects by the Department of Energy (DoE).
“The lowering of the transmission rate is again, one of the efforts of the Commission to provide relief to all the electricity consumers, especially those that are economically disadvantaged who lost their jobs and earnings due to the implementation of the Enhanced Community Quarantine (ECQ),” Ms. Devanadera said.
Recently, the agency allowed the National Transmission Corp. to draw funds from the Feed-in-Tariff Differential (FD) component of the Feed-in-Tariff Allowance (FiT-All) to augment deficiencies in the Cost Recovery Revenue (CRR) sub-account in order to continue funding renewables producers.
Meanwhile, the Department of Energy on Tuesday signed a new circular ordering the use of all available and unremitted funds under Energy Regulation (ER) 1-94 to fight the COVID-19 pandemic, in compliance with Republic Act. No. 11469 or the Bayanihan To Heal As One Law.
ER 1-94 sets aside for power plant host communities a one centavo per kilowatt-hour take from total electricity sales.
The new order would allow local government units to use the funds to buy medical equipment, provide special risk allowances to health workers, and facilitate mass testing, among other COVID-19 response projects allowed by the DoE. — Adam J. Ang
