THE Energy Regulatory Commission (ERC) said on Monday that transmission charges are likely to fall after revamping the process for computing the fees collected by the National Grid Corp. of the Philippines (NGCP).
In a briefing, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the commission is expecting to complete by year’s end the reset of the NGCP’s transmission charge for 2023-2027.
Ms. Dimalanta said the impact of the reset will be apparent by January.
“We are targeting to complete (the review) by the end of the year so we can start with new rates in January,” Ms. Dimalanta said.
On Sunday, the ERC said it promulgated the Amended Rules for Setting Transmission Wheeling Rates (RTWR), which triggers the rate reset process for the NGCP.
Transmission wheeling rates are the direct charge for the use of transmission facilities in delivering electricity.
“The science behind rate setting is not perfect because it is based on forecasts, but for this regulatory review, it will be based on actual figures,” Ms. Dimalanta said.
Ms. Dimalanta said the reset was long overdue and that rates needed to be adjusted for current conditions.
The ERC said on Sunday that the amended RTWR will eliminate over recoveries, double compensation, and redundant inflationary considerations. — Ashley Erika O. Jose