February 3, 2023

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NGCP seeks ERC grant for ₧20B investment projects

The National Grid Corp. of the Philippines (NGCP) Seeks Regulatory Approval for Immediate Implementation of P20.3 Billion Transmission Projects

“In addition to being responsible for the planning, construction, central operation and maintenance of its high-voltage transmission systems, it is essential for NGCP to ensure reliable and efficient operation of the transmission network.

It is therefore imperative that the proposed capital expenditures are implemented to avoid business disruption and to ensure continued compliance with NGCP’s EPIRA mandate as Transmission System Operator [capital expenditure] Projects will be approved immediately,” the grid operator said in its application to the Energy Regulatory Commission (ERC).

These projects are Maco-Mati 138kV transmission line project worth 3.61 billion pesos Simeon 230kV substation project worth 4.42 billion pesos and Concepcion-Sta project. Ignacia 69kV transmission line project worth P1 billion.

The company said the projects are designed to meet the growing demands of the industrial sector, manage transmission line congestion, cope with projected demand growth, improve power reliability and provide a grid connection point.

Last week, Synergy Grid and Development Philippines Inc. (SGP), the indirect controlling shareholder of NGCP, reported a 34 percent increase in operating services revenue for the nine months of the year due to higher interim maximum allowable revenue (iMAR).

In a regulatory filing, SGP said operating services revenue reached 48.67 billion pesos at the end of September, up from 36.35 billion pesos in the same period a year ago.

“This is due to higher iMAR2020s approved by the Energy Regulatory Commission effective January 1, 2020 and the approval of incremental new iMAR2020s for 2020 and 2021,” it said.

The MAR designates the maximum revenue that the network operator may generate from its transmission operations. For 2020, the ERC has granted NGCP injunctions to implement an iMAR2020 in the amount of P51,471,130,000.