NGCP Seeks ERC Approval for £20 Billion Capital Investment Projects

National Electricity Corporation. The Philippines (NGCP) is seeking regulatory approval for the immediate implementation of 20.3 billion pesos worth of power transmission projects.

“Along with the responsibility for planning, construction, centralized operation and maintenance of its high voltage transmission facilities, NGCC needs to ensure the reliable and high-performance operation of the transmission system.

Thus, in order to avoid operational disruption and to ensure that the NGCP’s mandate under EPIRA as a transmission operator is maintained at all times, it is critical that the implementation of the proposed capital investment [capital expenditure] projects must be approved immediately,” the grid operator said in a statement filed with the Energy Regulatory Commission (ERC).

These projects include the 138 kV Maco-Mati transmission line project of 3.61 billion pesos, the Calbayog-Allen transmission line project of 3.32 billion pesos, the Laray 230 kV substation project of 6.35 billion pesos, the 230 kV Pinili substation project of 1 .64 billion pesos, San project Simeon 230 kV substation project worth 4.42 billion pesos and Concepcion-Sta. Ignasia 69 kV transmission line project worth 1 billion pesos.

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

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

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

This is due to the higher iMAR2020 approved by the Energy Regulatory Commission effective January 1, 2020 and the recognition of additional new iMAR 2020 for 2020 and 2021.

MAR refers to the maximum revenue that a network operator is allowed to earn from its transmission operations. For 2020, the ERC provided NGCP with temporary assistance for the implementation of iMAR2020 in the amount of 51,471,130,000 pesos.