Philippines: NGCP to roll out 20 transmission projects for 2017

Philippines: NGCP to roll out 20 transmission projects for 2017

THE NATIONAL GRID CORP. OF THE PHILIPPINES (NGCP) IS SET TO REINVEST ITS
REVENUES IN 20 PROJECTS TARGETED FOR IMPLEMENTATION THIS 2017 TO IMPROVE THE
COUNTRY'S TRANSMISSION NETWORK.

Seven out of the 20 projects are major backbone projects, including
Tuguegarao - Magapit 230-kV, Luzon and Visayas Voltage Improvement, Mindanao
2300kv Backbone, Cebu-Negros-Panay 230-kV Interconnection, Pablibalo
extra-high voltage project, Hermosa-San Jose 500-kV, and Calaca-Dasmarinas
500-kv projects.

"These are all backbone projects. [The revenues we collect] will come back
to the grid as investments," NGCP spokesperson Cynthia Alabanza said.

The construction of the projects will begin construction this year that will
take about three to five years to finish.

Alabanza added that NGCP has been cleared to collect an interim maximum
annual revenue (iMAR) of 43.79 billion this year until the Energy Regulatory
Commission (ERC) renders its decision on the performance-based regulation
(PBR) rules.

"So far, we're fixed in P43-billion unless there will be another issuance
for the next PBR," Alabanza said.

MAR is the maximum revenue that NGCP is allowed to earn through its
transmission operation.

ERC has also allowed the NGCP to lift its revenue target to P43.79 billion
for 2016, of which the P2.14 billion under-recovery will be recovered this
year, Alabanza added.

This has reflected in the bills of Manila Electric Co. (Meralco) customers
this month as transmission charges went up by P0.15 per kilowatt - hour due
to NGCP's higher iMAR implementation and higher ancillary service charges.

The PBR is a rate - setting methodology by the ERC to determine the
distribution and transmission rates.

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Link to Original Article:
http://powerphilippines.com/2017/02/15/ngcp-20-transmission-projects-2017/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com