RE perks to impact consumers in Jan 2014
The cash incentive of P0.0017 per kilowatt hour (kWh) for renewable energy-based power project developments for off-grid areas will be reflected in the bills of all electricity consumers starting January, 2014.
That has been specified in the recently-issued order of the Energy Regulatory Commission (ERC), as anchored on the application of the National Power Corporation (NPC) on cost recoveries for universal charge for missionary electrification (UCME).
The regulator has directed all distribution utilities, the National Grid Corporation of the Philippines (NGCP) and NPC “to collect the cash incentive for RE developer of P0.0017 per kWh starting January 2014 billing period.”
The regulatory body’s instruction was for the cash collections from consumers to be remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM), the administrator of the UCME fund.
The RE incentive pass-on cost will be on top of the P0.0709 per kWh to be collected also from the consumers to account for NPC-SPUG’s universal charge for missionary electrification.
The ERC said that amount is “on top of the existing UC-ME rate of P0.0454 per kWh.”
The regulator further instructed that the duration of collections will be “until such time that the full amount of P4.65 billion shall have been collected.”
The prescribed stretch of recovery will be for seven months. While the full amount is being recovered from consumers, PSALM has also been directed to already advance the P4.65 billion for NPC-SPUG’s budgetary requirements.
NPC actually sought for higher cost recoveries in its application, but such had not been granted yet by the ERC.
For this year, the company’s proposed UCME to be recouped will be P0.2262 per kWh; and even higher at P0.3179 per kWh next year; then P0.3088 per kWh in 2015; and P0.2088 per kWh in 2016.
NPC justified that the true-up adjustments “shall be the difference between the revenue requirements of the adjusted reasonable cost of generation vis-à-vis the revenue requirement for NPC-SPUG’s approved UCME computation.”