The Energy Regulatory Commission has allowed state-run Power Sector Assets and Liabilities Management Corp. to recover P37.068 billion from consumers under the universal charge item of the electric bill.
Consumers, however, will feel only a slight increase in the universal charge, as only the approved P0.0265 per kilowatt-hour increase will be reflected in the universal charge for the stranded debt of National Power Corp. starting July.
The regulator approved PSALM’s stranded debt recovery of P24.198 billion equivalent to P0.0265 per kWh covering the period 2011 to 2012.
“All distribution utilities and the National Grid Corp. of the Philippines are hereby directed to collect the amount of P0.265 per kWh from the consumers starting the next billing period and remit the same to PSALM,” ERC said in a decision dated June 27.
Stranded debts refer to any unpaid financial obligation of Napocor which have not been liquidated by proceeds from the sale and privatization of Napocor’s assets.
PSALM said the approved P0.0265 per kWh recovery was lower than the proposed recovery rate application of P0.0382 per kWh and the nine-year recovery period until June 2026 would mitigate the impact to consumers while allowing the agency to recover its costs.
PSALM is mandated to manage the assets and liabilities of Napocor.
ERC, in a separate decision dated July 6, allowed PSALM to recover P12.878 billon from consumers equivalent to P0.1938 per kWh for Napocor’s stranded contract costs.
The stranded contract costs of Napocor, as defined under the Electric Power Industry Reform Act of 2001, refer to the “excess of the contracted cost of electricity under eligible contracts over the actual selling price of the contracted energy output of such contracts in the market.”
ERC said it merely extended the recovery of the universal charge for stranded contract cost, which is now at P0.1938 per Kwh. There is no rate increase in that portion of the bill, it said.
