THE Energy Regulatory Commission (ERC) approved capital expenditure (capex) proposals amounting to P101.81 billion in 2024.
The applications had been filed by the National Grid Corp. of the Philippines (NGCP) and various distribution utilities (DUs) and electric cooperatives, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta told reporters at a recent briefing.
“All in all, these projects amounted to P101 billion in investments required from NGCP and the DUs” benefiting more than 185,000 customers, she said.
The commission issued decisions involving 37 capex projects. Thirteen applications were from the NGCP and 20 were from DUs.
It also promulgated 12 NGCP capex projects and three DU projects.
In 2024, the ERC approved of 11 power supply agreements, allowing the distribution of electricity generated by plants with capacity of up to 3,052.9 MW.
It also approved 31 ancillary services procurement agreements worth 41.63 MW and 15 point-to-point applications, paving the way for the delivery of 2,362.43 MW of capacity.
The ERC also approved 386 certificates of compliance (CoCs) and provisional authorities to operation for independent power producers, 3,806 CoCs for qualified end-users, 894 CoCs for self-generating facilities, and 53 CoCs for distributed energy resources.
A CoC is a license issued by the ERC that grants permission to operate, allowing the entry of a total of 27,424.327 MW new capacities from issued certificates.
“This year, we are targeting to issue the final decisions for all 36 ancillary services agreements. There are also 15 point-to-point (applications). These are the lines from the plant connecting to the grid,” Ms. Dimalanta said.
For 2025, the ERC’s first-half priorities include the completion of the rate reset processes covering the fourth and fifth regulatory periods for the NGCP and power distributor Manila Electric Co., respectively.
The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period. The ERC assesses the actual performance of the entity and adjusts rates as needed.
The commission is also hoping to act on the pending petitions of the state-run National Power Corp. (NPC) regarding its rate application for Universal Charge for Missionary Electrification (UCME), a monthly charge collected from on-grid electricity end-users used to subsidize cost of power in off-grid areas.
“Hoping by this first month of the year, we will resolve all the pending UCME petitions of NPC to align with the current UCME petitions,” the ERC chief said.
The commission is also hoping to finish the roadmap on Full Retail Competition and Open Access (RCOA) and the campaign on Omnibus Customer Choice Programs within the first half of the year. RCOA allows qualified electricity consumers to choose their own power supplier.
For the second half, the key priorities include the resolution for NGCP’s rate reset covering the fifth regulatory period, completion of the reset of other private DUs, and revision of the secondary price cap at the Wholesale Electricity Spot Market. — Sheldeen Joy Talavera
