State-run National Power Corp. (NPC) is seeking approval from the Energy Regulatory Commission (ERC) to avail of missionary electrification (ME) share from the universal charge (UC) amounting to P175.621 billion as of August 2023.
NPC has 16 pending petitions with the ERC to avail of the ME share in the UC covering the period 2013 to 2023. The total amount would be adjusted once a petition was approved by the regulator.
NPC, as the implementing agency for ME, said it is duty-bound to ensure the provision of the estimated subsidy requirements needed in the electrification of missionary areas or far-flung areas from the universal charge collected from electricity end-users as determined by the ERC.
The company said that given the energy shortage especially in small island grids, and with the connection of the households in these areas to the main grid not being financially feasible due to low demand, low population density and geographical constraints, it is a challenge to bring these areas to their viable level.
NPC said off-grid electrification costs are often beyond the capacity of most household consumers to pay because of lack of resources and opportunity or option that the progressive or viable areas could provide or are providing.
“Hence, NPC must endeavor to fully and efficiently meet its missionary electrification function in order to bring these areas to a viable and competitive level for private sector participation,” the company said in one of its filings.
NPC said that through the mandated UCME subsidy, the provision of electricity becomes affordable and, at the same time, spurs economic activity and facilitates the delivery of basic services to the off-grid consumers.
“The UCME subsidy is an avenue to support the government’s thrust of total electrification. Unelectrified, unserved, or underserved off-grid areas are given provision of electricity through this subsidy. Moreover, the UCME subsidy essentially helps NPC maintain its power plants/facilities and allow the same to remain in proper and working condition, which ensures continued and uninterrupted supply of power to the electricity consumers in the off-grid areas,” it said.
The pending filings were collated by Power Sector Assets and Liabilities Management Corp., which manages the assets and liabilities of NPC as mandated under the Electric Power Industry Reform Act of 2001.
ERC chairperson Monalisa Dimalanta said NPC’s filings accumulated over the years, but the agency approved a 2022 application. Dimalanta said the ERC granted interim relief to NPC’s 2022 basic UC-ME petition with rates at P0.1822 per kilowatt-hour.
