The Energy Regulatory Commission (ERC) has granted a partial approval to Ingrid Power Holdings Inc.’s (IPHI) appeal to reconsider its five-year contract for providing ancillary services with the National Grid Corporation of the Philippines (NGCP).
In a report by Manila Standard, ERC upgraded the permitted recovery for IPHI from Php 1.50 to Php 4.19 per kilowatt hour (kWh) as the corporation expressed its concerns, saying that the higher rate would keep the facility competitive in the face of price increases.
The commission had initially allowed IPHI and NGCP to move forward with their agreement for the 179.824 megawatt (MW) Pililla Diesel Power Plant in Rizal, under interim relief conditions, pending final approval of rates and terms.
Additionally, the partial clearance has no bearing on the examination of NGCP’s adherence to the Department of Energy’s ancillary service competitive selection procedure.
IPHI expressed concerns over the ERC’s decision, highlighting discrepancies between approved rates and operational costs that could impact its financial viability under the agreement.
