NGCP, power distributors asked to update capex plans

By Adam J. Ang – June 16, 2020 | 8:30 pm
from Business World

THE Energy Regulatory Commission (ERC) directed all power utilities and the National Grid Corp. of the Philippines (NGCP) to update their capital expenditure (capex) plans to reflect adjusted demand forecasts for upcoming projects.

The regulator noted that electricity demand assumptions and forecasts used by distribution utilities and the private transmission company for their proposed projects this year “may need to be adjusted… as the same may no longer be realistic under the current demand and supply scenario,” ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a statement Tuesday.

The power utilities and the NGCP will also have to submit a new timetable for implementing their proposed projects, as well as the electricity distributors’ plans to address issues with project execution during the pandemic.

“We trust that the regulated entities will extend their usual support to the Commission by assisting us in determining the necessity and timeliness of these capex projects and its possible impact to the electricity consumers given the unprecedented situation brought about by the global pandemic,” Ms. Devanadera said.

The NGCP told legislators last month that some of its ongoing projects suffered from delayed delivery of equipment due to quarantine restrictions. Also, technical consultants for some projects have not been able to conduct scheduled inspections due to an inability to travel.

It said the delays would “result in facilities’ deficiency to cope with the anticipated grid requirements.”

“While the demand is low during the ECQ (enhanced community quarantine), it is still expected to increase as quarantine measures are relaxed and upon full lifting of the restrictions. Thus, delayed projects may introduce system operating limits that could lead to Automatic or Manual Load Dropping,” it said.

Between mid-March and April, the Department of Energy reported an electricity demand decline of up to 30% as industries and business establishments closed.

Starting May, when the government eased restrictions in some areas, demand began to gradually pick up, based on the monitoring of the Independent Electricity Market Operator of the Philippines.