State-run National Power Corp. (NPC) and Power Sector Assets and Liabilities Management Corp. (PSALM) are jointly seeking another R0.4487 per kilowatt hour (kwh) adjustment in NPC's generation charge to represent cost recoveries for fuel and those relating to its contracted capacity with independent power producers.
In the same application for deferred accounting adjustment (DAA) with the Energy Regulatory Commission (ERC), NPC and PSALM wanted the Visayas generation charges increased by R0.3763 per kwh; while slashing Mindanao grid's charges by R0.0975 per kwh.
The total amount being recovered for the Luzon grid is R1.597 billion while the Visayas cost recovery is R340.580 million.
Mindanao, on the other hand, has over-recoveries of R132.239 million which may be returned as refund to consumers once the DAA application is approved by the ERC.
Such deferred cost recoveries to be incorporated in the Generation Rate Adjustment Mechanism (GRAM) component of the NPC billing was applied consistent with the required mechanism for the recovery of deferred fuel and IPP costs, according to NPC and PSALM.
The application covers the test/billing period from May 2008 to June 2008; and the proposed spread of cost recoveries will be for two months.
In the filing, NPC and PSALM said the cost recovery shall account for "the difference …