Marcos orders ERC to expedite NGCP rate reset

President Ferdinand Marcos Jr. ordered the Energy Regulatory Commission (ERC) to expedite the completion of the rate reset review for National Grid Corporation of the Philippines (NGCP) following a massive blackout in Western Visayas.

Marcos emphasized that NGCP failed during a crucial two-hour window to prevent a system collapse, despite power being restored later, causing significant hardships to residents and businesses.

The ERC targets completing its review within the first quarter of 2024 to determine new transmission rates for NGCP.

ERC chairperson Monalisa Dimalanta stated that the regulator had already issued partial results of its ongoing review, disallowing NGCP from recovering more than half of what it applied for under the rate reset review.

The ERC determined an allowable revenue of P183.491 billion for Phase 1 of the fourth regulatory period covering 2016-2020, significantly lower than NGCP's claims of P387.803 billion.

NGCP is tasked with ensuring timely completion of critical interconnections like Mindanao-Visayas by late January 2024 as previously promised but not fulfilled.