Published
By Myrna M. Velasco
Transmission firm
National Grid Corporation of the Philippines (NGCP) is required to file a
separate application for regulatory go-signal on its proposed P51.696-billion
capital outlay for the Visayas-Mindanao Interconnection Project (VMIP),
according to Energy Regulatory Commission (ERC) Officer-in-Charge Alfredo J.
Non.
“That (project funding)
shall be a subject of another application,” the ERC Commissioner has noted, as
to the allotment of final capital expenditures (capex) for the project.
Nevertheless, this will
not hurdle the project developer NGCP into advancing the venture’s cost and
shall just apply for cost recoveries later on.
It must be recalled
that the ERC had already given its provisional approval on the feasibility
study that NGCP had lodged a bid for the VisMin transmission link-up that once
completed, will finally loop all the three power grids of the country.
In that interim
regulatory approval, NGCP proposed the multi-year capex for the VMIP: P9.705
billion in 2018; P35.383 billion in 2019; P1.725 billion in 2020; and P4.882
billion in 2021.
ERC Spokesperson
Floresinda B. Digal explained that “all interim projects are subject to
optimization, meaning the cost to be allowed for recovery may not be the same
as the one proposed by the applicant (in this case NGCP).”
She added that since
the VisMin project is already outside of the company’s reset process under the
performance-based regulation (PBR) scheme, NGCP may advance the funding but it
can only recover costs incurred in later applications.
As stipulated in last
month’s ERC order, the VMIP is targeted for completion in year 2020. NGCP
though has yet to officially announce its construction and installation
timeframes on the project.
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