LA TRINIDAD, Benguet -- The provincial board of Benguet is bent on filing a resolution blocking the request of the National Grid Corporation of the Philippines (NGCP) to the Energy Regulatory Commission (ERC) to allow the collection from electricity customers in Luzon the costs it incurred from damages caused by Typhoon Nina in December 2016.
The NGCP seeks to recover more than P327 million from Luzon power users for the repair of transmission lines damaged by the typhoon one and a half years ago.
The NGCP wants the ERC to declare the typhoon damage as a force majeure event (FME) or an unavoidable incident.
Provincial Board Member Nestor Fongwan Jr. decried NGCP’s inability to inform the province and the consumers on its FME application to ERC, which he described as “oppressive”.
Fongwan said Benguet was spared of the wrath of Typhoon Nina, which was the strongest cyclone to hit Bicol in 10 years.
The NGCP, through Agnes dela Cruz, Tariff Design and Billing Manager, informed members of the Sangguniang Panlalawigan of Benguet during the board's regular session on Monday that the state firm had filed an FME claim with the ERC on December 22, 2017.
The provincial government of Benguet only learned of the details of the NGCP’s application for claims, when the board passed a resolution seeking for the corporation’s full disclosure on its application with the ERC.
Dela Cruz justified NGCP’s application by citing ERC Resolution No. 26 Series of 2009, which provides that regulated entities affected by a force majeure or fortuitous events shall seek the confirmation of the government agency prior to the implementation of capital expenditure projects arising from the said event.
She said the NGCP spent PHP134 million in capital and operating expenses to cover the immediate repair, restoration, and rehabilitation of the damaged facilities.
She added the recoverable value or the net fixed asset value (NFAV) of the damaged facilities is equivalent to PHP193 million.
The Stockpedia website defines NFAV as the purchase amount of fixed assets like land, buildings, equipment, machinery, vehicles, and leasehold improvements.
The NGCP thus, seeks approval to recover PHP327million from Luzon customers from January 2018 to December 2020, or until the amount is fully recovered.
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 the year 2020.
The NGGP senior official justified further that the state transmission firm needs to immediately recover the amount so it could continue providing efficient service to the grid customers. (PNA)
