Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC GRANTS APPROVAL OF NGCP’s 2017 CAPEX

The Energy Regulatory Commission (ERC) granted provisional approval on the National Grid Corporation of the Philippines’ (NGCP) capital expenditure (CAPEX) program for Calendar Year (CY) 2017.  NGCP’s application covered CAPEX for CYs 2017 to 2020 with a proposed total cost of some PhP113.4 Billion, but the ERC only provisionally approved the CAPEX for this year (2017) amounting to PhP5.5 Billion.  The ERC’s approval covers fifty-eight (58) projects, out of the sixty-five (65) projects proposed by NGCP, which are found to be urgent and crucial to ensure continuous, efficient, and reliable supply of electricity. 

In its evaluation, the ERC found that the NGCP’s PhP113.4 Billion proposed total CAPEX cost included costs that are beyond CY 2020.  The ERC’s provisional approval are subject to the following conditions:  (1) The proposed projects shall be subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period; (2) NGCP to conduct competitive bidding for the purchase of major materials in the implementation of the proposed projects; and (3) NGCP to pay in staggered basis the permit fee in the amount of PhP41,311,170.00 for the 2017 projects. 

NGCP, a corporation created pursuant to Republic Act No. 9136, or the EPIRA Law, is mandated to assume the transmission functions of the National Transmission Corporation (TRANSCO). NGCP proposed Grid Expansion and Reliability projects, Operations and Wholesale Electricity Market Support (WESM) projects and other Non-Network Projects deemed essential to provide continuous supply, efficient, reliable and best possible quality of service to its customers.

“The Commission needs to study further the propriety of the CAPEX projects and their corresponding costs for the years 2018 up to 2020.  There is no urgency to grant approval of those projects which can be done upon completion of the public hearings.    We need to establish and ensure that the projects are indeed necessary so as not to unduly burden the consumers with exorbitant power rates”, ERC Chairman and CEO Jose Vicente Salazar said.


 

Today at ERC
Wednesday, September 20, 2017

Hearing Schedules
Time:
10:00
Case No.:
2017-064 CF [JU] [EX] [PT] [EV]
Applicant:
MASELCO
Venue:
ERC Hearing Room (15th Floor)
Title:
Application for Confirmation and Approval of Calculations of Over or Under Recoveries in the Implementation of Automatic Cost Adjustments and True Up Mechanisms Covering the Period 2014 to 2016, Pursuant to ERC Resolution No. 16, Series of 2009, As Amended by ERC Resolution No. 21, Series of 2010 and ERC Resolution No. 2013, Series of 2010
Time:
10:00
Case No.:
2015-223 RC [JU] [EX] [PT] [EV]
Applicant:
TRANSCO, DANECO & DLPC
Venue:
ERC Mindanao Field Office, Mintrade Bldg., Monteverde Avenue corner Sales Street, Davao City
Title:
Application for the Approval of the Sale of Various Sub-transmission Lines/Assets of the National Transmission Corporation (TRASCO) to the Consortium of Davao del Norte Electric Cooperative, Inc. (DANECO) and Davao Light and Power Company, Inc. (DLPC) as Covered by a Contract to Sell dated 06 March 2012
Time:
14:00
Case No.:
2017-054 CF [JU] [EX] [PT] [EV]
Applicant:
BATELEC II
Venue:
ERC Hearing Room (15th Floor)
Title:
Application for Confirmation and Approval of Calculations of Over or Under Recoveries in the Implementation of Automatic Cost Adjustments and True Up Mechanisms Covering the Period 2014 to 2016, Pursuant to ERC Resolution No. 16, Series of 2009, As Amended by ERC Resolution No. 21, Series of 2010 and ERC Resolution No. 23, Series of 2010
Time:
9:00
Case No.:
2017-042 RC [Pubcon]
Applicant:
PEMC
Venue:
Main Conference Room of Mindanao Development Authority Office, Old Airport Building, Old Airport Road, Km 9 Sasa, Davao City, 8000
Title:
Application for the Approval of the Price Determination Methodology for the Wholesale Electricity Spot Market (WESM)

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