ERC junks NPC's rate hike petition
The Energy Regulatory Commission (ERC) dismissed on 15 December 2008 the application filed by the National Power Corporation (NPC) and the Power Sector Assets and Liabilities Management Corporation (PSALM) for a PhPO.3685/kWh increase in its base generation rates in the Luzon grid.
In dismissing NPC's rate hike petition, the ERC found that NPC failed to discharge its burden of proving by substantial evidence its plea for a rate increase. The ERC gave no probative value to NPC's submissions in support of its application, which the regulator found not to be reflective of its current costs.
“As an independent, quasi-judicial
body, the ERC is duty-bound to decide the cases filed before it on the basis
only of substantial evidence. Whether or not NPC is entitled to any increase
ultimately depends on what evidence it will submit to the ERC. If it submits
none that can be given any probative value, as what it did in this case, then
the dismissal of its application is a foregone conclusion," Chairperson
Zenaida G. Cruz-Ducut said.
December 22, 2008