NPC wants to recover fuel cost

The National Power Corp. (NPC) is seeking to recover over P1 billion in fuel cost it incurred in 2020.

In a filing with the Energy Regulatory Commission (ERC), the state firm said it wants to recover the amount through the Generation Rate Adjustment Mechanism (GRAM) over a two-year period in the amount of P1.203 per kilowatt hour (kWh) in Luzon, P1.9080 per kWh in Visayas, and P0.9402 per kWh in Mindanao, for a total of P1.0836 per kWh.

Under NPC’s application, which covers the billing period from July to December 2020, the power plants under NPC-SPUG (Small Power Utilities Group) has incurred additional operating costs amounting to P1,247,850,185.73 as a result of increasing fuel prices used in power generation. 

Of the amount, the deferred fuel costs and for Luzon amounted to P634,974,406.47; P124,386,073.42 in Visayas, and P488,489,705.84 in Mindanao.

NPC, which is allowed to recover the amount through the GRAM, proposed to recover this within 2 years to mitigate the impact to customers in the missionary areas.

 “The proposed 23rd GRAM is fair and reasonable as it is computed in line with the GRAM rules as approved by the Commission. The proposed deferred accounting adjustment will reflect the recent costs authorized under the GRAM mechanism and NPC would increase the revenue commensurate with its cost and ultimately reduce the burden of the UCME [universal charge missionary electrification] on all electricity end-users,” it said.


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