The Energy Regulatory Commission (ERC) has approved a lower annual revenue requirement for the National Grid Corporation of the Philippines (NGCP), cutting 15.28 percent from what the company originally sought. Instead of P442.60 billion, NGCP will be allowed to recover P374.98 billion annually for the 2023 to 2027 period, following the ERC’s review under the Fifth Regulatory Period reset.
The decision means NGCP can still recover costs needed to operate, maintain, and upgrade the country’s power grid, including approved capital expenditures for new transmission projects and system reinforcements. At the same time, the ERC rejected charges that failed regulatory review, including NGCP’s bid to pass real property taxes on to consumers, citing legal rulings that exempt the company from such taxes. The ERC said the final amount balances the need to fund critical power infrastructure while preventing excessive transmission charges, ensuring electricity rates remain fair and reasonable for consumers.
