ERC implements rules for the setting of transmission wheeling rates

The Energy Regulatory Commission (ERC) has promulgated the Amended Rules for the Setting Transmission Wheeling Rates (RTWR).

The RTWR is a set of rules that determines how much the national transmission utility, in this case, the National Grid Corp. of the Philippines (NGCP), is allowed to charge for transmission rates to users of the high-voltage system.

The transmission wheeling rate is a direct charge that electricity consumers pay for using transmission facilities necessary for delivering electricity to households, industries, and commercial establishments.

It is a line item that may be seen in the monthly electric billings of all consumers.
ERC said the issuance of the Rules triggers the rate reset process of the transmission system concessionaire, NGCP.

The last transmission reset completed by the ERC was for the five-year Regulatory Period covering 2010-2015.

ERC chairperson Monalisa Dimalanta said the amended RTWR seeks to restore balance in transmission regulation.

“The long delay in the reset has not been fair in many respects. Consumers and grid users, on one hand, have become increasingly skeptical of the reasonableness of the rates that continue to be charged. Investments and new generation capacities have been stalled because, among others, of the uncertainty in funding for transmission projects,” she said.

Dimalanta said the grid operator has not been able to demonstrate efficiencies in its operations for the past 6-7 years “that would entitle it to the grant of performance-based incentives.”

The amended RTWR sets the rules for the rate reset process for the Fifth Regulatory Period, which covers 2023 to 2027 and the succeeding regulatory periods.