Napocor seeks rate hike to subsidize electricity of off-grid areas

MANILA – The National Power Corp (Napocor) is asking for an increase in electricity rates to cover a shortfall in last year’s subsidy meant to finance power plants operating in off-grid areas.

In a petition before the Energy Regulatory Commission, state-owned Napocor sought P5.37 billion to plug a deficit it incurred in 2012 from off-grid areas or those not connected to the power grid such as islands and far-flung locations.

“The costs proposed for recovery are merely reimbursements of actual expenses made for calendar year 2012 and though recovery scheme is deferred in nature there are no carrying charges calculated and proposed thereon,” Napocor said.

To recover the amount, Napocor proposed a P0.08 per kilowatt-hour increase in electricity rates from all consumers for a period of 12 months through the Universal Charge for Missionary Electrification, a component of electricity bills.

Consumers subsidize a portion of Napocor’s expenses in these areas because of the high cost of operating isolated power facilities compared with those connected to the grid.

via Napocor seeks rate hike to subsidize electricity of off-grid areas – InterAksyon.com.