Republic of the Philippines

ENERGY REGULATORY COMMISSION

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ERC Gives Green Light to NGCP’s Cebu - Lapu-Lapu Transmission Project

The Energy Regulatory Commission (ERC) approved the Cebu – Lapu-Lapu Transmission Project (CLTP) of the National Grid Corporation of the Philippines (NGCP).  The CLTP, with an estimated cost of approximately PhP1.884Billion, will form part of the planned 230 kV transmission backbone in the Visayas and will serve as an outage contingency to the existing Cebu – Mandaue – Lapu-Lapu Transmission corridor.  The project is to be implemented from 2019 until 2020.

“The Cebu – Lapu-Lapu transmission line project aims to address the expected overloading of the Cebu - Mandaue – Lapu-Lapu Transmission line which will result to power curtailment.  Once the CLTP is completed, additional transmission capacity will be available for the Cebu – Mandaue – Lapu-Lapu transmission corridor” ERC Chairperson and CEO Agnes VST Devanadera explained.  

    The ERC’s approval of the CLTP is subject to the following conditions:  (1) The project shall be subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period following the procedures stated in the Rules for Setting the Transmission Wheeling Rates (RTWR) and other relevant issuances of the ERC.  Optimization focuses on removing redundant assets and over-capacity, as well as inefficient design and “gold-plated” engineering within the existing network; (2) All cost related to the failed implementation aspect of the previously approved project shall be disallowed and shall be subject to optimization during the reset process for the next regulatory period; and (3) NGCP is required to conduct competitive bidding in the implementation of the projects.  

 “The Cebu - Lapu-Lapu Transmission Project (CLTP) will redound to the benefit of the electricity consumers in terms of having a sustainable electricity in Cebu.  Also, the project will increase NGCP’s grid transfer capability as power interchanges between Visayas and Mindanao will become possible once the ERC-approved Visayas-Mindanao Interconnection Project (VMIP) is implemented” ERC Chair Devanadera added.  





 


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