Ilocos Norte board seeks clarification on NGCP’s pass-on costs to consumers

By Leilanie G. Adriano

Staff reporter

LAOAG CITY—Ilocos Norte Officials and residents want clarification on the recovery of more than PHP327 million which the National Grid Corporation of the Philippines (NGCP) plans to pass on to its consumers in Luzon.

Sponsored by the committee of the whole, the Sangguniang Panlalawigan passed a resolution asking the management of NGCP to make a full disclosure of its request to the Energy Regulatory Commission (ERC) for a provisional approval for the collection of the force majeure pass-through costs from its customers in Luzon. The collection, if approved, will take effect on 2018 to 2020, or until NGCP fully recovers the total amount.

Ilocos Norte Vice Governor and SP presiding officer Eugenio Angelo M. Barba said “Electric consumers here need to be enlightened why is there a need for them to shoulder the costs NCGP incurred from the damages caused by typhoon Nina in December 2016”.

When sought for comment, Lilibeth Gaydowen, NGCP corporate communications and public affairs officer explained that under the rules for the setting of transmission wheeling rates, the law allows NGCP to recover the expenses it incurred from typhoon damages as the law considers this as a “force majeure” or an avoidable incident.

Once approved by the ERC, NGCP will collect the total amount of PHP327,520,000 from end-consumers on installment basis.

But before the pass-on charges take effect, officials and consumers expect the ERC to call a public hearing inviting all local government units concerned to participate.

“The NGCP is open [to] a dialogue. During the typhoon Nina, there were minor damages in Ilocos Norte but NGCP incurred damages Luzon-wide. It’s like a spider web, when one is broken, it affects the whole,” said Ms. Gaydowen citing “It all depends on the ERC on what computation to follow.”

She also assured consumers the NGCP has “no right to recover the amount without the approval of the ERC”.

To recover the amount, the grid operator will charge an additional PHP0.83 per kilowatt (kwh) a month in 2018, PHP0.86 per kwh a month in 2019, and PHP0.90 per kwh a month in 2020.

Earlier, the Benguet provincial board filed a resolution blocking the NGCP request to the ERC to allow the collection of more than PHP327 million from Luzon consumers.

NGCP incurred the said amount for the repair of transmission lines previously damaged by the typhoon.

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