NGCP: Delays in recovering investments to affect transmission projects
Future projects of the National Grid Corp. of the Philippines (NGCP) may take a hit from the energy regulator’s sluggish approval of the former’s request to recover investments in energized power lines, an official said.
“Yes,” NGCP spokesperson Cynthia Alabanza said when asked if planned transmission lines would be affected by the absence of the approvals. A regulated entity is required to present its expected spending and proposed projects over a five-year period. Based on these, the Energy Regulatory Commission (ERC) would then evaluate how much should be passed on to consumers.
To recall, NGCP had asked the ERC to regain the investment it used to finance two crucial power lines: the Mariveles-Hermosa-San Jose (MHSJ) and the Cebu-Negros-Panay (CNP) transmission lines. The capital for these projects totaled P87.9 billion, but the NGCP was only allowed to collect P201.78 million.
Alabanza earlier declined to disclose the amount of recovery fees the NGCP included in an appeal because it covered numerous projects. The MHSJ and CNP were just highlighted because they were the latest to be energized, she said. The NGCP official remained optimistic that the ERC would eventually heed their call.
“We have faith that the ERC will come out with the decision soon and with the reasonable recovery for NGCP’s investments,” she said, adding: “We are hoping that whatever decision they will come up with, it would be fair enough to encourage NGCP investors,” Alabanza added.
Sought for comment, ERC Chair and CEO Monalisa Dimalanta told Inquirer on Saturday that they understand NGCP’s concern. “That is among the serious consequences of not having the reset of NGCP’s rates conducted on a timely basis.
This commission, however, is committed to complete the reset as required of us under the law so that we can also reduce the regulatory uncertainty in the power sector,” she said. NGCP’s rate assessment or reset for the fourth regulatory period, which covers the years 2016 to 2020, is still up for ERC evaluation.
