The Energy Regulatory Commission (ERC) is evaluating pending petitions of the National Power Corp. (NPC) for the approval of its availment from the Universal Charge for Missionary Electrification (UCME) and all other similar applications.
UCME is collected from power consumers connected to the grid and is spent to lower the cost of providing power to Small Power Utilities Group (SPUG) plants nationwide which are mostly located in remote areas and are not connected to the main grid.
Earlier, NPC said its 2023 budget must be augmented to ensure that it can sustain the operations of its 278 power plants under SPUG and prevent a widespread power interruption.
ERC said it has been informed by several new power providers and qualified third parties of the circumstances surrounding the delay of NPC in the payment of UCME subsidy billing which may result in power outages in areas not connected to the grid, among others.
“NPC explained 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.
Tasked to protect and promote consumer interest, ERC is facing the challenge of balancing the interests of both the consumers and end-users in missionary areas, and the on-grid consumers who are charged to subsidize the UCME. – Jed Macapagal
