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
Tuesday, May 23, 2017

Hearing Schedules
Time:
10:00 A.M
Case No.:
2014-057-CC 
Applicant:
Ramir R. Gabriel
Venue:
ERC Conference Room, 10th Floor, Pacific Center Building, San Miguel Avenue, Pasig City
Title:
Ramir R. Gabriel vs. Manila Electric Company
Time:
10:00 A.M.
Case No.:
2016-207 RC [JU] [EX] [PT] [EV]
Applicant:
NORSAMELCO & SMEC
Venue:
NORSAMELCO’s Main Office in Magsaysay, Bobon, Northern Samar
Title:
Application for Approval of the Power Supply Agreement (PSA) Between Northern Samar Electric Cooperative, Inc. (NORSAMELCO) and San Miguel Energy Corporation (SMEC), with Prayer for the Issuance of Provisional Authority
Time:
10:00 A.M.
Case No.:
2017-010 RC (CANCELLED) [JU] [EX] [PT] [EV]
Applicant:
AURELCO - CANCELLED
Venue:
AURELCO’s principal office at Brgy. Reserva, Baler, Aurora (CANCELLED)
Title:
Application for Approval of Force Majeure CAPEX Project: (Rehabilitation of Distribution Lines Due to Damage Caused by Natural -Calamity - Typhoons Karen and Lawin), with Authority to Secure Loans from NEA and Prayer for Provisional Authority - CANCELLED
Time:
2:00 P.M.
Case No.:
2015-126 RC [JU] [EX] [PT] [EV]
Applicant:
NORSAMELCO
Venue:
NORSAMELCO’s Main Office in Magsaysay, Bobon, Northern Samar
Title:
Application for Approval of Adjustment in Rates Pursuant to the Tariff Glide Path (TGP) Rules, with Prayer for Provisional Authority
Time:
2:00 P.M.
Case No.:
2013-145 RC [EV]
Applicant:
TRANSCO & BENECO
Venue:
ERC Hearing Room (15th Floor)
Title:
Application for the Approval of the Sale of Various Sub-transmission Lines/Assets of the National Transmission Corporation (TRANSCO) to Benguet Electric Cooperative, Inc. (BENECO), as Covered by a Lease Purchase Agreement dated 09 February 2013
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