The Energy Regulatory Commission (ERC) clarified on Friday, May 23, that while it has approved a number of capital expenditure (CAPEX) projects submitted by the National Grid Corporation of the Philippines (NGCP), the corresponding costs have not yet received final approval and remain subject to further scrutiny and review.

The clarification comes amidst rising scrutiny of power infrastructure spending, especially as the country faces ever-rising electricity demand. According to ERC Chairperson and CEO Monalisa C. Dimalanta, the costs reflected in recent CAPEX approvals were considered solely for computing permit fees and do not represent any final or validated amounts.

“[As] stated in the Commission’s various Orders covering these projects, the cost for each approved CAPEX project is currently considered only for the purpose of computing the permit fee and does not reflect the final cost as approved,” Dimalanta explained.

Under existing policy, the final cost determinations for CAPEX projects will take place during the upcoming reset process for NGCP, which allows for optimization and cost validation based on actual expenses incurred. This is in line with the procedures established under ERC Resolution No. 08, Series of 2022—the Amended Rules for Setting of Transmission Wheeling Rates (RTWR).

In recent months, the ERC has quickened its review and approval of key NGCP projects designed to address system overloads and expand grid access across Luzon and Visayas. These projects are seen as critical to preventing load curtailments and ensuring reliable electricity delivery.

“These CAPEX projects are critical in strengthening our power grid, to ensure a more reliable and secure electricity supply for Filipino households, businesses and industries,” Dimalanta said. “But at the same time, it is also important to emphasize that the final costs of these projects will still undergo careful review and deliberation by the Commission to ensure consumers pay only for what is necessary and reasonable.”

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