STATE-RUN National Power Corp. (NPC) is seeking approval from the Energy Regulatory Commission (ERC) to recover costs incurred due to foreign exchange (forex) fluctuations, amounting to approximately P21 million.
In its filing with the ERC, promulgated on Jan. 22, NPC is seeking to recover deferred accounting adjustments (DAA) corresponding to additional costs from foreign exchange fluctuations related to debt service payments and operating expenses, along with corresponding carrying charges in 2022.
The application covers the billing period from January to December 2022 under the incremental currency exchange rate adjustment (ICERA).
ICERA provides a mechanism for the recovery or refund of deferred incremental costs or savings resulting from foreign exchange fluctuations and carrying charges.
With board approval, NPC is proposing the recovery of P0.0384 per kilowatt-hour, to be charged to island grid customers over a 12-month period.
“The proposed ICERA DAA is fair and reasonable as it is computed in line with the ICERA Guidelines,” the company said.
NPC clarified that the proposed ICERA is based solely on foreign exchange-related adjustments attributable to its Small Power Utilities Group (SPUG), excluding costs associated with its operations in the main grids.
The company is also seeking ERC approval to implement the proposed rates on top of the existing subsidized, approved generation rate in both NPC-SPUG and delegated NPC-SPUG areas to determine the level of subsidy. – Sheldeen Joy Talavera
