NGCP seeks cost recovery for damaged line facilities

The National Grid Corp. of the Philippines (NGCP) is seeking clearance to recover over P7 million from electricity endusers in Luzon and Mindanao for the repair of transmission facilities which were damaged as a result of sabotage and lightning.

NGCP has filed an application with the Energy Regulatory Commission (ERC) to declare bombing incidents in its Luzon and Mindanao facilities, as well as the lightning that struck one of its Luzon assets, as force majeure event (FMEs).

It said tower No. 106 in Cotabato was bombed on Oct. 3, 2017, which also affected other transmission assets and facilities in the region.

Its HEDCOR-Sabangan substation in Mountain Province was also bombed by armed men on Oct. 10, 2017, which caused power outage in the whole province and nearby areas.

Meanwhile, its La Trinidad substation in Benguet province was damaged by an explosion caused by lightning and thunder amid heavy rains on Nov. 14, 2017.

Under the rules for the setting of transmission wheeling rates (RTWR), the grid operator is allowed recover the cost it incurred for the repair, restoration and rehabilitation of its transmission assets and other related facilities damaged by the FMEs including sabotage and a storm.

Immediately after the incidents, NGCP said it started the repair of the damaged facilities to which it incurred additional costs in the amount of P3.42 million and the recoverable value or the Net Fixed Asset Value (NFAV) of the assets equivalent to P4.33 million.

The grid operator is asking the ERC for a provisional approval for the collection of the force majeure (FM) passthrough costs totaling P7.45 million from customers in Luzon and Mindanao for a period of three years or until 2020.

The grid operator is looking to charge Luzon customers an additional P0.08 per kilowatt (kw) a month in 2018, P0.01 per kw a month in 2019, P0.02 per kw a month in 2020.

Meanwhile, Mindanao customers will be charged P0.16 per kw a month in 2018, P0.03 per kw a month in 2019, P0.03 per kw a month in 2020.

NGCP needs to immediately recover the actual expenses incurred for the repair, restoration and rehabilitation of the damaged transmission assets and other related facilities to allow the continuous provision of transmission service to the grid customers.