The National Grid Corp. of the Philippines (NGCP) is set to reinvest its revenues in 20 projects targeted for implementation this 2017 to improve the country’s transmission network.
Seven out of the 20 projects are major backbone projects, including Tuguegarao – Magapit 230-kV, Luzon and Visayas Voltage Improvement, Mindanao 2300kv Backbone, Cebu-Negros-Panay 230-kV Interconnection, Pablibalo extra-high voltage project, Hermosa-San Jose 500-kV, and Calaca-Dasmarinas 500-kv projects.
“These are all backbone projects. [The revenues we collect] will come back to the grid as investments,” NGCP spokesperson Cynthia Alabanza said.
The construction of the projects will begin construction this year that will take about three to five years to finish.
Alabanza added that NGCP has been cleared to collect an interim maximum annual revenue (iMAR) of 43.79 billion this year until the Energy Regulatory Commission (ERC) renders its decision on the performance-based regulation (PBR) rules.
“So far, we’re fixed in P43-billion unless there will be another issuance for the next PBR,” Alabanza said.
MAR is the maximum revenue that NGCP is allowed to earn through its transmission operation.
ERC has also allowed the NGCP to lift its revenue target to P43.79 billion for 2016, of which the P2.14 billion under-recovery will be recovered this year, Alabanza added.
This has reflected in the bills of Manila Electric Co. (Meralco) customers this month as transmission charges went up by P0.15 per kilowatt – hour due to NGCP’s higher iMAR implementation and higher ancillary service charges.
The PBR is a rate – setting methodology by the ERC to determine the distribution and transmission rates.