is a subsidy mechanism instituted under the Electric Power Industry Reform Act (EPIRA) especially funneled to off-grid areas.
It asked the power regulator to increase its UCME
charge from P0.1163 per kilowatt-hour to P0.1948 per kwh.
If the NPC request is approved, the UCME
of households consuming 200 kWh per month will go up by P38.96, P58.44 for 300 kWh households, and P77.92 for 400 kWh households, he added.
phase out, he said, shall be concretized in two Circulars that the DOE will be issuing and enforcing soon.
The subsidy portion being charged against the UCME
is collected from all Filipino consumers in their monthly electricity bills.
Collection of the UCME
will be deferred for six months to help ease the burden of customers amid the ongoing controversy over power generation hikes, Napocor explained.
takes the form of subsidy charges being paid by all Filipino consumers for electricity services rendered in off-grid areas; while UC for stranded contract costs represent component of power prices unrecoverable from the market.
The bulk of Napocor's budget often comes from the universal charge for missionary electrification (UCME
), which is a uniform levy collected every month from all power consumers connected to the grid.
On another tier, the increase in SPUG rates will also raise the universal charge for missionary electrification (UCME
) that all Filipino consumers will shoulder in their electricity bills.
The privatization of SPUG areas is meant to bring down power rates for customers serviced by the main grids who shoulder part of the cost of the subsidy program via the universal charge for missionary electrification (UCME
) component in their power bills.
Aside from fuel prices at the pumps and coal excise taxes' impact on power generation, the other components in energy bills that will go up due to TRAIN will be those on universal charge for missionary electrification (UCME
) because of the excise taxes on diesel and bunker-C fuel used in electricity generation for off-grid areas; the re-imposition of value added tax in the wheeling charge of the National Grid Corporation of the Philippines and the removal of exemption in the replacement fuel cost on Malampaya's shutdown.
In a decision, the Energy Regulatory Commission said the amount would be collected from all grid-connected power consumers within 17 months through the universal charge missionary electrification (UCME
) component of the power bill.