by Lenie Lectura – December 18, 2015
from Business Mirror
The National Grid Corp. of the Philippines (NGCP) wants to recover over P37 million in expenses incurred for the repair and restoration of damaged transmission assets hit by typhoons Ruby and Seniang in December 2014.
In a nine-page application filed before the Energy Regulatory Commission (ERC), the grid operator said the total cost it incurred as additional force majeure event (FME) capital expenditure (capex) for the repair, restoration and rehabilitation of its transmission assets and other related facilities in the Visayas and Mindanao damaged by the tropical storms is P37,809,639.76.
Broken down, the FME capex for Visayas stood at P27,605,604.18, and P10,204,035.58 for Mindanao.
The NGCP proposes the FME pass-through amount to be collected starting January 2016 to December 2020 to allow the recovery of the capex incurred relative to the FME Ruby and Seniang. “The NGCP needs to immediately recover the actual expense incurred. It must be emphasized that the occurrence of the FME Ruby and Seniang required massive capital infusion, thus, the recovery of which should be allowed immediately to avoid any financial strain in the operation of the NGCP and to allow the continuous provision of transmission service to the grid customers,” the NGCP said in its application.
Likewise, the NGCP is asking the ERC to approve the recovery of the net fixed asset value of the transmission assets and other related damaged facilities amounting to P16,556,597.57, “given that it would have been fully recovered by NGCP if these transmission assets and other related facilities have not been damaged or destroyed by FME Ruby and Seniang.” The NGCP is allowed to recover the cost it incurred in the repair, restoration and rehabilitation of its transmission assets damaged by tropical storms.
The NGCP said it has not recovered any amount from its Industrial All-Risk insurance policy procured from the Government Service Insurance System for the year 2014. “Thus, it is but proper for NGCP to file the instant FME claim application to recover the cost it incurred,” the application said.