THE Energy Regulatory Commission (ERC) said it hopes to issue rulings on pending capital expenditure (capex) projects proposed by the National Grid Corp. of the Philippines (NGCP) this month, its chief said.
“Most likely within the month, we’ll discuss and approve the remaining capex that were not included in the fourth (regulatory period). Some were included in the fifth,” ERC Chairman and Chief Executive Officer Francis Saturnino C. Juan told reporters.
Mr. Juan said that ERC is prioritizing such matters after receiving a letter from the Department of Energy pointing out the NGCP’s critical capex projects.
Under its congressional 50-year franchise, the NGCP has the right to operate and maintain the transmission system and related facilities.
NGCP capex projects must be approved by the ERC as required by Republic Act No. 9136 or the Electric Power Industry Reform Act.
The ERC completed the NGCP’s fourth regulatory period (RP) rate reset, covering the years 2015 to 2022. The fifth RP covers January 2023 to December 2027.
The NGCP was allowed to collect an additional P28.29 billion in under-recoveries.
Last year, the grid operator said it is preparing to deploy P600 billion for more than 100 capex projects. — Sheldeen Joy Talavera