MANILA, Philippines —Transmission asset concessionaire National Grid Corporation of the Philippines (NGCP) is seeking adjustment in its maximum allowable revenue (MAR) this 2012 to P47.775 billion as referenced on its third regulatory reset under performancebased regulation.

This will somehow reduce NGCP’s translated rate to P376.08 per kilowatt per month (kW/month) from a comparative tariff of P338.34 per kW/month last year.

The proposed lower rate has been intended to be billed to consumers on NGCP’s December 2011-January 2012 billing cycle based on the provisional authority it has been seeking with the Energy Regulatory Commission.

It was further culled from the company’s petition that the resulting tariff rate will be at P0.764 per kWh, or a reduction of P0.033 per kWh from P0.797 per kWh last year. NGCP’s comparative MAR for 2011 was at a higher P47.893 billion.

The ERC has scheduled public hearings on NGCP’s bid for a provisional approval on its revenue requirement until January 30 this year. It also apprised all concerned parties to submit or file their respective motions or oppositions to the pending case.

Apart from the updating of its MAR, the company similarly sought the regulator’s go-signal on the recovery of its performance incentive scheme (PIS) benefit amounting to P503.12 million as well as the system operator and metering service provider charges and the co-location and rental of equipment.

NGCP specifically prayed that a “provisional authority be issued authorizing it to implement and commence the billing and collection of the MAR 2012 in the amount of P47,775 billion and the PIS in the amount of P503.12 million beginning the billing period December 26, 2011 to January 25, 2012.”

The MAR will be the basis of the tariff to be billed by NGCP to its load customers based on forecast volume sales and corresponding energy demand at a particular year.

The PIS, as prescribed in the rules on setting the transmission wheeling rates, would refer to the reward or penalty system imposed on regulated utilities depending on how they have met certain criteria that shall define their performance levels.

It has been noted that the sum of NGCP’s net incentives is still below the maximum reward of P1.322 billion as provided for in its PBR final determination.

Also for this year, the proposed system operator charges have been set at P17.55 per kilowatt per month for firm rate; and P0.5770 per kW/ month for non-firm rate.

The metering service provider charges vary across customers depending on voltage levels. The meteronly charges could range from P3, 246 to P19,715 per unit.

The applicant firm opined that “the timely implementation of the rate/tariff changes will allow the equal or even spread of the increases or decreases in tariffs for the 12-month billing periods.”

It has likewise been emphasized that “the timely implementation of the rate changes will reduce, if not eliminate, the risk of under-recovery” which at times, could end up substantial for the regulated entities.