Napocor files petition for rate hike anew

MANILA, Philippines - Almost a month after its generation charge increase petition was rejected by the regulator, the National Power Corp. (Napocor) has re-filed last week its application to adjust rates. Napocor asked for an increase of 83.32 centavos per kilowatt-hour for Luzon, P1.3815 for Visayas and P1.0686 for Mindanao. The Energy Regulatory Commission last month rejected Napocor’s petition to increase Luzon power rates by 37 centavos based on 2002 and 2004 figures, which did not reflect true costs. Napocor did not indicate its proposed adjustments for Visayas and Mindanao in this petition. In the new application, Napocor included a 12% return-on-rate base (RORB) that would provide customers incentive schemes such as the P0.30 mandated rate reduction pursuant to the Electric Power Industry Reform Act of 2001 and the discount granted to Napocor customers with up-to-date payments. The 12% RORB also complied with covenants with foreign creditors such as the World Bank and Asian Development Bank, Napocor added. Napocor also factored in its 2007 audited statement of results of operation per plant and actual payments for so-called capacity and infrastructure fees for build-operate-transfer plants. Napocor said the application calculated the revised revenue requirement without related costs, rate base and other revenues relative to the sale, transfer and disposal of generation assets. The proposed generation charge would also affect the time-of-use rates for all grids, it added. Napocor spokesman Dennis S. Gana said their basic rate was last increased in 2004. ERC executive director Francis Saturnino C. Juan meanwhile said that the application still has to undergo public hearings and evaluated by the commission before implementation. — BusinessWorld