Senator Sherwin Gatchalian on Thursday, November 16 said he expects power consumers to greatly benefit from the Energy Regulatory Commission’s (ERC) decision to reduce the National Grid Corporation of the Philippines’ (NGCP) annual revenue to P36.7-billion. 

The amount is significantly lower than the maximum allowable revenue of P43.789-billion collected from consumers from 2016 to 2020.

“There’s a high probability we will see a reduction in transmission rates starting next year, particularly in the second quarter. It’s a welcome news for all of us,” Gatchalian said in a statement. 

The P7.089-billion difference will most likely be refunded to consumers, the lawmaker noted. 

This will eventually be reflected in lower transmission rates on power consumers’ electricity bills, the senator said.

“The potential refund is expected to come in the form of rate reduction that the NGCP is already collecting from consumers,” Gatchalian said. 

He clarified that the final reimbursement amount by NGCP to power consumers will be deducted from the existing rates that the NGCP is already passing on to consumers.

“Inaasahan natin na mababawasan ang buwanang bayarin ng mga consumer sa kuryente sa pamamagitan ng mas mababang transmission charge kapag naipatupad na ito simula sa susunod na taon  (We expect that the monthly electricity bills of consumers will be reduced through the lower transmission charge once it is implemented starting next year),” he said. 

Earlier, Gatchalian called on the ERC to penalize NGCP for delayed transmission projects that adversely impact the country’s electricity supply. He noted that about 36 transmission projects are currently delayed. 

The lawmaker reiterated that the NGCP should not be allowed to collect from consumers’ transmission charges for projects that are yet to be completed, and more so for projects that do not have a timetable.