Gatchalian expects consumers to benefit from reduction of NGCP's proposed annual revenue

Senator Win Gatchalian expects power consumers to benefit from the Energy Regulatory Commission's (ERC) decision to reduce the National Grid Corporation's (NGCP) annual revenue to P36.7 billion, significantly lower than the maximum allowable revenue (MAR) of P43.789 billion collected from consumers from 2016 to 2020.

The difference of PHP 7.089 billion, equivalent to P35 billion for five years, between the ERC-determined annual revenue requirement (ARR) of NGCP of P36.7 billion and the annual MAR of P43.789 billion collected by NGCP from consumers through the transmission charge from 2016 to 2020, will most likely be refunded to consumers. This will be reflected in lower transmission rates on power consumers' electricity bills, according to Gatchalian. The ARR of P36.7 billon is contained in the results released by the ERC as part of its partial initial determination for NGCP's rate reset covering the years 2016-2020.

"There's a high probability we will see a reduction in transmission rates starting next year, particularly in the second quarter. It's welcome news for all of us," said Gatchalian.

"The potential refund is expected to come in the form of rate reduction that the NGCP is already collecting from consumers," Gatchalian said. He clarified that the final reimbursement amount by NGCP to power consumers will be deducted from the existing rates that the NGCP is already passing on to consumers.

"Inaasahan natin na mababawasan ang buwanang bayarin ng mga consumer sa kuryente sa pamamagitan ng mas mababang transmission charge kapag naipatupad na ito simula sa susunod na taon," Gatchalian said.

The results of ERC's final review will be released by the end of the year. Following the disallowance made by the ERC of certain items from being included in the computation of NGCP's operating and maintenance expenses (OPEX), Gatchalian urged the ERC to disallow the inclusion of yet-to-be-completed transmission projects in the computation of NGCP's ARR.

The ARR sets the proper amount that is determined as reasonably compensating NGCP for prudent, economically efficient, reasonable, and validated costs it incurred in expanding and operating the transmission system. The ARR is determined based on NGCP's OPEX, other taxes, return on capital, and return of capital, among others.

Gatchalian has earlier urged ERC to penalize NGCP for delayed transmission projects that adversely impact the country's electricity supply. According to the senator, about 36 transmission projects are currently delayed. He emphasized that NGCP should not be allowed to collect from consumers' transmission charges for projects that are yet to be completed, particularly those that are without a definite timetable.

Mga konsyumer makikinabang sa pagbabawas ng panukalang taunang kita ng NGCP -Gatchalian

Inaasahan ni Senador Win Gatchalian na makikinabang ang mga power consumer sa desisyon ng Energy Regulatory Commission (ERC) na bawasan ang taunang kita ng National Grid Corporation of the Philippines (NGCP) sa P36.7 bilyon, na mas mababa sa maximum allowable revenue (MAR) na P43.789 bilyon na nakolekta mula sa mga consumer mula 2016 hanggang 2020.

Ang PHP7.089 bilyon na pagkakaiba sa pagitan ng P43.789 bilyon na MAR at P36.7 bilyon na dapat na annual revenue requirement (ARR) ng NGCP, na katumbas ng P35 bilyon sa loob ng limang taon mula 2016 hanggang 2020, ay inaasahang maibabalik sa mga consumer. Ito ay makikita sa mas mababang transmission rates na magre-reflect sa buwanang singil sa kuryente ng mga power consumer, ayon kay Gatchalian.

"Malaki ang posibilidad na makita natin ang pagbabawas sa transmission rates simula sa susunod na taon, o sa ikalawang quarter ng 2024. Magandang balita ito para sa ating lahat," ani Gatchalian.

"Ang inaasahang refund ay sa pamamagitan ng mas mababang rate mula sa kinokolekta ng NGCP sa mga mamimili," sabi ni Gatchalian. Nilinaw niya na ang pinal na halaga ng reimbursement ng NGCP sa mga power consumer ay ibabawas sa mga kasalukuyang rate na ipinapasa na ng NGCP sa mga consumer.

"Inaasahan natin na mababawasan ang buwanang bayad ng mga consumer sa kuryente sa pamamagitan ng mas mababang transmission charge kapag naipatupad na ito simula sa susunod na taon," Gatchalian said.

Ang resulta ng huling pagsusuri ng ERC ay ilalabas sa katapusan ng taon. Kasunod ng 'disallowance' ng ERC sa ilang mga gastusin na kasama sa computation ng operating and maintenance expenses (OPEX) ng NGCP, hinimok ni Gatchalian ang ERC na huwag payagang isama ang mga hindi pa natatapos na transmission projects sa computation ng NGCP.

Nauna nang hinimok ni Gatchalian ang ERC na parusahan ang NGCP para sa mga delayed transmission projects na makakaapekto sa suplay ng kuryente sa bansa. Ayon sa senador, nasa 36 transmission projects na ang naantala. Binigyang-diin niya na hindi dapat payagang mangolekta ang NGCP mula sa mga singil sa transmission ng mga mamimili para sa mga proyektong hindi pa natatapos, partikular na ang mga walang tiyak na timetable.