NGCP confirms transmission rate hike in February billing

Transmission service provider National Grid Corporation of the Philippines (NGCP) has confirmed the rate hike on its wheeling charge in the February billing of consumers, mainly arising from the re-imposition of 12 percent value-added tax (VAT) on its regulated tariff courtesy of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

NGCP Spokesperson Cynthia Perez-Alabanza qualified though that they normally bill their load customers on per kilowatt-month (kW-month) basis, so it would be up to the front-lining distribution utilities (DUs) to translate that into per kilowatt-hour (kWh) rates in their customers’ billings.

“The law (TRAIN) has been passed, so we will implement it. It (VAT charges) will be applied in the January billing,” she said.

In the power industry, the cut-off cycle every billing is 25th day of each month, so if this will be reflected in the January 25 billing of NGCP, it will automatically reflect in the end-consumers’ bills next month.

Power utility giant Manila Electric Company (Meralco) previously told media that the cost impact of NGCP’s reinstituted 12 percent VAT charges would be to the tune of R0.07 per kWh or about R14 equivalent for those in the usual base of 200kWh usage of households.

Additionally, with the impasse plaguing the Energy Regulatory Commission (ERC) and consequently affecting the chain of operations in the power industry, Alabanza noted that NGCP cannot set out any level of certainty that brownouts will not happen, especially on months when reserves are seen to be running thin.

“There can be no absolute guarantee that there can be no power outages, because we cannot factor in every possible scenario. To a certain degree of sureness, it may or may not happen,” she stressed. (MMV)