The Energy Regulatory Commission (ERC) has resumed assessing all pending petitions by the National Power Corp. (NPC) to avail of the so-called universal charge that help small countryside power producers sustain their own operations.
A universal charge for missionary electrification (UCME) is collected from power consumers connected to the grid which is then spent to lower the cost of providing power to small power utilities group (SPUG) plants nationwide, mostly located in remote areas and not connected to the main grid.
NPC had said it needed an augmentation of its 2023 budget to ensure the uninterrupted operations of 278 SPUGs under its wings.
The ERC said several new power providers and qualified third parties also informed the commission of the circumstances surrounding the delay in the payment of the UCME subsidy by NPC that could result to power outages in areas not connected to the grid, among other outcomes.
“NPC explained that the continuous increase in the average price of diesel has led to the depletion of NPC’s allotted funds for fuel. Thus, NPC has likewise taken measures to bridge the gap in funding through the implementation of corporate-wide austerity measures and by looking into possible borrowing or additional subsidies from the national government,” the ERC said in a statement.
ERC noted it is tasked to protect and promote consumer interest but is now faced with the challenge of balancing the interest of both consumers and end-users in missionary areas as well as for on-grid consumers who are charged to subsidize the UCME.
“Rest assured that the commission shall expedite the review of NPC’s relevant petitions following due process and proceedings, in addition to looking for alternative solutions to solve the present crisis in missionary areas, while ensuring that reasonable prices and quality service will be provided,” the ERC said.
NPC also operates the transmission systems of six provinces and provides electricity to some 1.3 million countryside households.
Apart from approval of tariff applications before the ERC, the NPC previously said contingency measures, including credit lines from the Landbank of the Philippines and reimbursements for advances it made in maintaining the Bataan nuclear power plant from 2011 to 2023 costing P404 million, are also being sought.
