The Energy Regulatory Commission (ERC) has unilaterally deferred the timeline on the determination of a new interim maximum allowable revenue (iMAR) of transmission firm National Grid Corporation of the Philippines.

The calculated iMAR of the company, to be established under the purview of performance-based rate-setting (PBR) scheme, shall also serve as the basis of any adjustments in transmission charge or tariff that NGCP shall be passing on to customers.

Nevertheless, in a recent hearing of the Senate Committee on Energy, the ERC confirmed that it has deferred action yet on the pending petition of NGCP to have its MAR raised to P47.1 billion for 2020 from P43 billion in 2019.

On a question raised by Senator Risa Hontiveros on the matter, ERC Chairperson Agnes T. Devanadera qualified that the application of NGCP that was approved by the regulatory body was the one that brought down its rates; and the ruling on that was rendered by the Commission last February 13.

In another hearing at the House of Representatives, ERC Spokesperson Floresinda Digal similarly stipulated that “the decision or the interim relief order that was issued by the ERC in February 2020 is not supposed to reflect an increase in the transmission charge.”

Digal explained “per our evaluation at that time, considering the data and information that we have, the approved iMAR is supposed to have lower transmission rates by P0.04 from P0.51 per kilowatt hour of 2019. With the interim relief granted in February 2020, we have simulated P0.47 per kWh transmission charge, so it would have been 4.0-centavos lower.”

On a new application for any increase in the company’s maximum allowable revenue, Devanadera indicated that it will likely be deferred even throughout this year, because it was NGCP itself that had given its imprimatur on having it put back.

“It was NGCP which stated that they will defer…therefore, we have reasonable grounds to believe that it will not be implemented,” the ERC chief stressed.

NGCP, along with the other regulated entities in the power industry, will supposedly enter the new regulatory reset on their tariff-setting, but snags happened including the engagement of regulatory experts that will help the Commission in adjusting the PBR scheme and to aid them in evaluating new rate applications.

The transmission firm itself is entering its fourth regulatory reset; and the last PBR-anchored adjustment it had was in regulatory year 2015-2016.

In the electric bills of consumers, the charges of NGCP account for the transmission charge, which is the component being regulated by the ERC; then the ancillary services charge which changes on a monthly basis because such represent its power supply procurements for its lines and in ensuring reliability of its operations.