NGCP sets completion target of Visayas power project in Q1

Business Mirror 

Published on Monday, 21 January 2013 20:11

Written by Lenie Lectura / Reporter

THE National Grid Corp. of the Philippines (NGCP) on Monday reported that it is slated to complete expansion work of its Visayas substation within the quarter.

The project covers the installation of a 50 megavolt ampere (MVA) transformer at NGCP’s Kabankalan Substation in Negros Occidental and another at its Calung-calung Substation in Cebu. A 100 MVA transformer at the Ormoc Substation in Leyte is likewise to be installed under this expansion project. These transformers will accommodate the growth in demand and facilitate the efficient and reliable delivery of electrical power in the Visayas.

 NGCP’s P349.07-million Visayas Substation Expansion I Project started in April 2011 and will soon be completed.

 The new transformers at Ormoc and Kabankalan were energized on December 29 and December 30, 2012, respectively.

NGCP said that the expansion project is meant to build a “stronger transmission for a stronger nation.”

NGCP 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 and towers, substations and related assets.

Just recently, the Energy Regulatory Commission (ERC) issued a ruling on NGCP’s maximum allowable revenue (MAR).

“The commission hereby provisionally approves the application filed by the NGCP for approval of its MAR for 2013 in the amount of P44.567.18 billion and the Performance Incentive Scheme [PIS] reward claim in the amount of P609.05 million to be implemented effective in its January 2013 billing,” said the ERC MAR also sets the revenue ceiling collected by NGCP from distribution utilities. The approved MAR is higher than last year’s P42.903 billion.

But a higher MAR and PIS will not result in higher transmission charges for the consumers.

“The effective MAR for calendar year 2013 increased by P1.664 billion. However, the rate impact to the customers decreased by approximately P0.00975 due to the higher percentage of increase in the billing determinant than the percentage increase in the MAR,” ERC said.

In effect, the average transmission charge will be reduced to P0.67475 per kilowatt-hour (kWh) compared to with last year’s P0.68450 per kWh.

The ERC explained this is the effect of a higher demand.    source