National Power Corp. (Napocor) wants to pass on to consumers the nearly P2 billion it spent to deliver power to missionary areas.
In a petition filed before the Energy Regulatory Commission (ERC), the state-owned firm said it had incurred P1.892 billion in deferred fuel, purchased power and foreign exchange costs over the January 2012 to June 2014 period.
It asked the regulator to increase Small Power Utilities Group (SPUG) rates by P2.0627 per kilowatt-hour (kWh) in Luzon, P2.3236/kWh in the Visayas and P1.4584/kWh in Mindanao.
Napocor is mandated by law to provide electricity to SPUG or missionary areas that are not connected to the country’s main transmission system.
Costs incurred are allowed to be recovered under the Generation Rate Adjustment Mechanism (GRAM) and the Incremental Currency Exchange Rate Adjustment (ICERA) schemes, subject to evaluation and approval by the ERC.
Napocor earlier sought approval for the recovery of P8.774 million representing deferred accounting adjustments for foreign exchange fluctuations via a P0.0178/kWh adjustment for SPUG areas.
It is currently considering renewable energy and hybrid systems for its missionary electrification program to lower the subsidy rates of the 290 SPUG power plants across the country.
Napocor has vowed to continue adding power capacity to existing SPUGs and new areas, targeting to complete 116 MW of additional capacity in the next five years.