In a provisional authority issued by the Energy Regulatory Commission (ERC), it allowed state-run National Power Corporation (NPC) to recoup P0.0978 per kilowatt hour (NPC) from consumers via the universal charge component in the bills to compensate for the P5.693 billion to be disbursed by the Power Sector Assets and Liabilities Management Corporation (PSALM) as subsidy for missionary electrification.

The ERC ruling was promulgated August 17, and it was indicated therein that “all distribution utilities and the National Grid Corporation of the Philippines (NGCP) are directed to collect the UCME charge in the amount of P0.0978 per kWh from the consumers starting the next billing period from the receipt of the Order.”

The universal charge for missionary electrification (UCME) is a separate line item in consumer billings; and collections for such are remitted to PSALM.

NPC and distribution utilities noted that the newly approved UC collection will not necessarily drive up overall electricity rates billed to consumers, as there are different factors to be considered – including the high availability of hydro during the month which may pull down generation charges.

The P5.693 billion subsidy to be released by PSALM to NPC-Small Power Utilities Group (NPC-SPUG) will just cover the latter’s needs for the year 2009.

In its filing, NPC batted for a five-year schedule on its subsidy requirements or from 2009 to 2013. In fact, for the year 2009, the state-run power firm’s subsidy requirement was estimated to cost P0.4912 per kWh, which is way higher than the initially approved UCME of about P0.10 per kWh.

The frontward subsidies petitioned for are: P0.2289 per kWh for 2010; P0.2401 per kWh for 2011; P0.2422 per kWh for 2012; and P0.2005 for 2013.

“The multi-year petition would be consistent with the period coverage of the Missionary Electrification Development Program of the DoE (Department of Energy),” the power firm has indicated in its filing.

It added that a longer-range schedule for the UCME collections will “lessen the administrative burden
for both NPC and the Commission.”

It added that “the same will complement the flexibility being sought by it to deal with the dynamic nature of the MEDP, especially the nature of project implementation, which requires funds to be disbursed over a period of time.”