Napocor to collect P6b worth of subsidy

by Alena Mae S. Flores – January 25, 2016 at 11:25 pm

from Manila Standard

State-owned National Power Corp. is set to file a petition before the Energy Regulatory Commission to hike the universal charge on consumers to recover nearly P6-billion shortfall in the missionary electrification subsidy in 2014.

Napocor proposed to recover P5.895 billion, representing the funding shortfall in 2014. Once approved by the ERC, the petition would translate into an increase in universal charge by P0.0788 per kilowatt-hour.

Napocor president Ma. Gladys Sta. Rita said in a statement the petition was based on the actual expenses, as against the actual approved revenue and sales from missionary areas and the universal charge for missionary electrification.

Sta. Rita said the application would “still pass through the process of public hearing and the commission’s evaluation and approval before implementation.”

Napocor said the huge shortfall in 2014 was due to the very low basic universal charge for missionary electrification at P0.0454 kWh, which translated into only P2.7 billion per year.

The state firm said the filing was one of two sources of the corporation’s funds as allowed under the Electric Power Industry Reform Act of 2001.

These include the universal charge for missionary electrification which is to be collected from all electricity consumers and energy sales collected from electric cooperatives.

Napocor said the petition was consistent with ERC Resolution 21, series of 2011, which amended the guidelines for the setting and approval of electricity generation rates and subsidies for missionary areas.

This provided that if the reconciliation resulted in Napocor’s small power utilities group having a deficiency, as confirmed by the ERC, it should be entitled to an increase in the UC-ME to cover the shortfall.

Sta. Rita also said that an additional funding through the approval of the instant petition would ensure an uninterrupted electricity supply as this would fully augment the funding requirements of Napocor.

She said given the increasing demand for energy and in line with the government’s thrust of economic development in the off-grid areas, availability of funding through the universal charge for missionary electrification particularly for fuel requirements would enable Napocor to optimize the use of available plant capacity.