ERC approves lower tariff for NGCP

January 21, 2013 2:43pm


The Energy Regulatory Commission (ERC) has approved the National Grid Corp. of the Philippines' (NGCP) application for a lower tariff while raising the company's maximum allowable revenue (MAR) for 2013.

A lower tariff would mean a lower cost of transmission and in turn lower electricity bills for customers.

The ERC also allowed NGCP a MAR of P44.567 billion for 2013. The amount is 3.88 percent higher than the MAR approved for 2012, but will lower the average tariff by a slight 0.9 percent to P330.77 per kilowatt, or to P0.67475 per kilowatt-hour from P0.68450 per kW/h in 2012.

The ERC, which approved the tariff adjustment on Dec. 17, 2012, said that the expected greater demand should lower the final cost of electricity on customers' bills.

The ERC also set a P609.05-million reward for NGCP under the Performance Incentive Scheme should it exceed its target level of performance under imposed performance standards.

The NGCP has a 25-year license to develop, operate and maintain the Philippines' transmission highway through the assets of the state-owned National Transmission Corp. Henry Sy, Jr., son of SM magnate Henry Sy, is company president and CEO. — BM, GMA News