Manila: The transmission rate of the National Grid Corp. of the Philippines (NGCP) has increased for the July billing period as the company implements the Energy Regulatory Commission’s (ERC) decision concerning under-recoveries and its maximum allowable revenue.

According to Philippines News Agency, the transmission rate for July stands at PHP0.5923 per kilowatt hour (kWh), up from PHP0.4611 per kWh in June. This increase is part of the regulatory adjustments mandated by the ERC. However, it is essential to consider the ancillary services rates, which have decreased to PHP0.5872/kWh in July from PHP0.6182/kWh in June. As a result, the overall average transmission rate has risen to PHP1.3233/kWh from PHP1.2113/kWh.

Julius Datingaling, NGCP’s business and regulatory development head, noted that aside from the ERC-approved collections, a decrease in energy consumption from June to July this year also influenced the transmission rates. The July transmission rate now includes the transmission grid operator’s ERC-approved maximum allowable revenue (MAR) of PHP58.10 billion, which the regulator has permitted to be collected over 84 months, an increase from the previous PHP6.62 billion.

The MAR represents what the ERC deems should be NGCP’s revenue ceiling, as part of the grid operator’s 4th Regulatory Period Reset, covering 2016 to 2022. Under this regulatory framework, NGCP initially requested ERC approval to recover PHP552.19 billion but was only authorized to collect PHP335.79 billion.

Cynthia Alabanza, NGCP Assistant Vice President and head of the public relations department, expressed her concerns during the same briefing. She highlighted that the amount NGCP seeks to recover reflects expenses incurred for upgrading and establishing new transmission lines, making the ERC’s decision unfavorable for them. “This is something we are considering,” Alabanza remarked when asked about the possibility of appealing the ERC decision.