Issue of July 15, 2018
Mt. Province

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NGCP plan to recoup P327 M losses from consumers opposed
by Ofelia C. Empian

All 13 municipalities of Benguet and other local government units in Luzon expressed support to the resolution of the Benguet provincial board in protesting the application of the National Grid Corporation of the Philippines to recoup its losses worth P327 million by passing it to consumers.

The LGUs of Kalinga, Mountain Province, Nueva Ecija, Nueva Vizcaya, Zambales, Aurora, Ilocos Sur, Rizal, Camariñes Norte, Cagayan, and Marinduque also backed the resolution.

The Benguet provincial board passed Resolution 18-274 protesting NGCP’s application to the Energy Regulatory Commission for the collection of pass-through costs of P327,520,000 from its customers in Luzon from January 2018 to December 2020 or until the amount is fully recovered.

In its application, NGCP stated it has spent P134,400,000 in capital and operating expenditures for the immediate repair, restoration and rehabilitation of damaged transmission assets and other related facilities. Further, the net fixed assets destroyed is P193,120,000, all in the sum of P327,520,000.

To recover the losses, NGCP is looking at charging an additional P0.83 per kilowatt hour a month this year, P0.86 per kilowatt hour a month in 2019 and P0.9 per kilowatt hour a month in 2020. In terms of kilowatt per hour, P0.0016 per kWh in 2018 and 2019 and P0.0017 per kWh in 2020.

The NGCP is also asking the ERC to declare Typhoon Niña as an unavoidable event (force majeure) after it damaged its transmission assets and facilities in Luzon in December 2016.

“The recovery of the damages incurred by NGCP is without legal basis, unreasonable and burdensome to its customers in Luzon – in the province of Benguet, in particular, and it should not be charged to the latter but charged to the NGCP as part of its operational expense/loss,” the resolution reads.

Mountain Province, Cagayan, Atok, Nueva Vizcaya, Cavite, Rizal, Camarines Norte, Marinduque, Kabayan, Mankayan, Sablan, Bakun, Pangasinan, and Zambales have also supported the earlier resolution of the provincial board asking the NGCP to provide full disclosure of its application. 

The NGCP had filed a force majeure event claim with the ERC on Dec. 22, 2017. The state-backed firm stated that Typhoon Niña damaged 581 poles and 34 steel towers all over Luzon.

Copies of the resolution were forwarded to the ERC through Chairperson Agnes Devanadera, NGCP head office, Benguet Gov. Crescencio Pacalso, as well as respective provincial governors and sangguniang panlalawigan of provinces within Luzon for their information and consideration.

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