National Grid seeks capex of P8b in 2016

by Alena Mae S. Flores – December 15, 2015 at 11:40 pm

from Manila Standard

National Grid Corp. of the Philippines is spending P8 billion in 2016 to improve, expand, rehabilitate and repair the nationwide transmission system and the power grid.

National Grid said in an application to the Energy Regulatory Commission the company was required to seek prior approval of any plan for expansion or improvement of facilities in relation to its responsibility to operate the nationwide transmission system and the grid.

“Along with its authority and responsibility for the planning, construction and centralized operation and maintenance of its high voltage transmission facilities, it is indispensable for NGCP to ensure a reliable and high-performance operation of the transmission system,” it said.

National Grid said the budget was needed to avoid disruption of operation and non-compliance of its mandate under the Electric Power Industry Reform Act of 2001 as the country’s transmission operator.

“It is imperative that the implementation of the proposed capex projects be immediately approved,” it said.

NGCP plans to spend the amount to finance the upgrade of the Tiwi and Naga substations, Clark-Mabiga 69 kV transmission line, Bataan 230 KV grid reinforcement, Hermosa-San Jose 500 KV transmission line, maintenance of equipment, revenue metering expansion and maintenance, telecommunications and SCADA maintenance and expansion, corporate and security infrastructure and assets for acquisition.

Assets up for acquisition include the CEDC-VECO’s Colon 138 kV line, Calung-Calung 138 kV line, New SAlong 230 kV substation and Salong Calaca 230 kV li e, CIP II substation.

National Grid is a privately-owned corporation in charge of operating, maintaining, and developing the country’s power grid. It transmits high-voltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations and related assets.

The consortium, which holds the 25-year concession contract to operate the country’s power transmission network, is comprised of Monte Oro Grid Resources Corp. led by Henry Sy Jr., Calaca High Power Corp. of businessman Robert Coyiuto Jr., and State Grid Corporation of China as technical partner.

National Grid earlier sought approval from the Energy Regulatory Commission to collect a maximum allowable revenue of P45.287 billion in 2016.

National Grid also asked ERC to approve an interim net performance incentive of P1.029 billion for 2015.

“The immediate implementation is necessary to reduce, if not eliminate, the risk of under-recovery which is substantial to NGCP,” the company said.

National Grid filed a higher maximum allowable revenue in 2016 compared with the 2015 approved revenue of P43.078 billion, but the company said it was expected to translate into the same level of indicative rates to customers amounting to P0.6196 per kilowatt-hour.