Nelson Morales

ERC to release NGCP rate reset by January

The inauguration of the National Grid Corporation of the Philippines Mariveles-Hermosa-San Jose 500kV transmission line in Barangay Balsik, Hermosa, Bataan on July 12, 2024. The 8,000 MegaWatt (MW)-line is more than capable of transmitting the 2,086MW power from new plants in the area.
Niño Jesus Orbeta, PPA pool

Article (news)

Paige Javier

ABS-CBN News

MANILA – The Energy Regulatory Commission (ERC) expects to complete the rate reset for the National Grid Corporation of the Philippines (NGCP) by next month.ERC Chairperson Monalisa Dimalanta made the statement at the House Committee on Legislative Franchises hearing on Monday.&quot;We are at the tail end of the reset for the fourth regulatory period. We have completed all the evaluation. As per our rules, we are required to publish the draft final determination we have done so,&quot; she said.&quot;We are completing the evaluation of these comments and we expect to issue the final determination by January 2025,&quot; Dimalanta added.The ERC official earlier said the rate reset review for NGCP has been delayed for several years due to internal issues, including appointment problems and suspensions.The fourth regulatory period covers 2016 to 2022.Dimalanta said they issued a partial determination in November 2023, resulting in the partial reduction of the allowable revenue of NGCP.&quot;In the final determination because of changes in the approaches adopted particularly by the majority of the commission, there is now a potential increase in the allowable revenue of the NGCP. This is now subject o final evaluation of the commission,&quot; she explained.NGCP Assistant Vice President and Spokesperson Cynthia Alabanza is hopeful issues raised during the hearing will be resolved by the rate reset.&quot;Umaasa kami na yung prosesong yun, yung due process ay masusunod at magkakaroon ng pagkakilala doon sa prevailing regulatory framework, sa mga batas na umiiral sa ngayon at doon sa mga regulation na lahat naman ay sinunod ng NGCP,&quot; she said.Alabanza said they spent P340 billion on the transmission system since their takeover in 2009.Lawmakers questioned the NGCP for the unfinished or delayed projects being charged to consumers.Alabanza pointed to the delay in the regulatory reset process as the cause of the issues with the capital expenditure (CAPEX) projects.&quot;Yan po yung dinatnan naming patakaran nung pumasok kami sa negosyo. Nung nagkaroon ng 4th regulatory period, wala pong rest wala pong rules. Kaya ang inapply ng NGCP yung rules which is for the 3rd regulatory period. Ito po ay forward looking at allowed po ang aksyon ng NGCP,&quot; she said.Dimalanta confirmed an absence in rules when the third regulatory period lapsed, but said it is not accurate to say it was allowed.&quot;The regulatory reset rules apply for a particular regulatory period. Pag lampas sa regulatory period na yun, meron talagang vacuum in the law. Kasi hindi na po siya nagaapply doon,&quot; she said.&quot;Hindi po ito issue ng retroactive rate making or rule making, kasi nga po klaro ang regulatory period may specific set of rules. Tama din po punto ng NGCP, hindi po kasi naglabas ng ERC ang rules po dati,&quot; Dimalanta explained.The ERC official acknowledged that the NGCP again applied for an interim rate in 2020.&quot;In 2020, they applied for an interim rate. It&#x27;s a recognition that there were no valid, issued, approved rates from 2016 all the way to 2020…. Kaya po interim lang ang pinasa ng Commission because it’s all subject to a full reset,&quot; Dimalanta explained.When asked about the NGCP&#x27;s actions, Dimalanta said the Commission should have resolved the fourth regulatory reset and released new rules.The fifth regulatory period will cover 2023 to 2027.In the same hearing, lawmakers renewed calls for a review of the NGCP&#x27;s franchise and floated the possibility of revocation due to various issues.Congressmen raised possible violations of the franchise including ownership issues and several delayed projects.The NGCP said they can explain all the issues which they claimed are not new, while calling for a fair investigation.Alabanza maintained they followed the rules and regulations, based on existing regulatory framework.The House panel will launch a motu propio investigation on NGCP&#x27;s franchise starting on January 6, 2025.

The Energy Regulatory Commission (ERC) expects to complete the rate reset for the National Grid Corporation of the Philippines (NGCP) by next month.

The Energy Regulatory Commission (ERC) expects to complete the rate reset for the National Grid Corporation of the Philippines (NGCP) by next month.