In what could be really worrisome news for consumers, transmission charges are set to increase beginning in August as the Energy Regulatory Commission (ERC) has allowed the National Grid Corporation of the Philippines (NGCP) to collect about ₱63.45 billion from customers in a decision setting the company’s revenue caps.
In a statement a day ago, the ERC disclosed that it had approved an annual revenue requirement of ₱374.98 billion for the NGCP, lower than the requested ₱442.60 billion, for the fifth regulatory period covering 2023 to 2027.
“Accordingly, NGCP is hereby directed to implement the maximum allowable revenue for RY 2023 in the amount of ₱63,449,702.720 starting August 1, 2026, until otherwise directed,” it cited in its January 30 decision.
Asked to explain about the projected increase, ERC representatives clarified that “this will translate to an additional charge of ₱0.06 per kilo watt hour (kWh) in the transmission charge for consumers and will be implemented starting in the August billing period and will last until the whole amount is collected.”
While NGCP officials were not immediately available for comment, the ERC further cleared that it had reduced the NGCP’s capital expenditures by 17 percent and also disallowed the recovery of real property taxes that the firm wanted to pass on to consumers.
This decision, it said, “strikes a balance between ensuring adequate funding for critical power infrastructure and safeguarding consumers from excessive transmission charges.”
“Only costs and investments that passed regulatory scrutiny were included in the approved revenue cap,” it added.