NGCP: P600-B transmission projects ready for implementation

The National Grid Corporation of the Philippines (NGCP) on Thursday said that it is ready to implement P600 billion worth of transmission projects as it awaits regulatory approval of its rate reset application.

“P600 billion worth of projects are in the pipeline, ready for implementation,” NGCP spokesperson Cynthia Alabanza said at a briefing in San Juan City.

The amount, she said, covers “more than a hundred” transmission projects under the NGCP’s Transmission Development Plan (TDP) 2024-2050.

“In the last 15 years, we have poured in P340 billion… moving forward we want to spend P600 [billion],” Alabanza said.

Among the notable projects in the NGCP’s pipeline, include the following:

• Batangas-Mindoro Interconnection and the Tuy-Dasmarinas 550kV Line in Luzon
• Panay-Guimaras 138kV Interconnection
• Cebu-Lapu-Lapu 138kV Line
• Laguindingan 230kV Substation
• Kabacan 138kV Substation

“These initiatives are critical for enhancing the reliability and capacity of the national grid,” Alabanza said.

In a chance interview with reporters, NGCP president and CEO Anthony Almeda, meanwhile, expressed optimism that the Energy Regulatory Commission (ERC) would green-light the grid operator’s rate reset application, which would allow the company to recover its significant investments.

“We hope it will be fair for all and just follow the rules of the agreement. That’s all. And at the end of the day, we all follow all the agreements... We need it badly,” Almeda said.

The ERC, last week, called for public comments on its draft Final Determination for the NGCP’s Fourth Regulatory Period (RP), covering the years 2016 to 2022.

The draft Final Determination recommends a total allowable revenue (ARR) of P310 billion for the grid operator for the period covering 2016 to 2022, this was lower than the P552 billion the company had requested. 

Regulatory reset is being conducted by the ERC to ensure that the grid operator’s revenues and customer charges remain appropriate and reflective of current. conditions. 

During rate reset, the regulator would review the NGCP’s expenditure items and other parameters, ensuring that only eligible and reasonable costs are passed on to consumers.—AOL, GMA Integrated News