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NGCP, Ingrid Power get nod to implement ancillary services deal

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By Lenie Lectura – July 17, 2024
from Business Mirror

NGCP

The Energy Regulatory Commission (ERC) has granted interim relief to the National Grid Corporation of the Philippines (NGCP) and Ingrid Power Holdings Inc. (IPHI) to implement their modified ancillary services procurement agreement (ASPA).

“The Commission, after due deliberation and evaluation, resolved to partially grant IPHI’s motion for reconsideration,” the ERC notice read. The NGCP posted the notice on its website.

“The notice is being issued due to lack of material time in promulgating the official order. The formal order will be issued shortly,” ERC Chairperson Monalisa Dimalanta said.

From P1.50 per kilowatt hour (kWh), the new rates increased to P4.19 per kWh. This is the new authorized rate that NGCP will pay IPHI for the scheduled capacities stated in the ASPA.

The higher rate is due to the fact that the plant is only partially contracted, and to ensure the viability of the power plant following the increase in input costs and cost of capital.

IPHI will continue to supply ancillary power to NGCP from the 150-megawatt (MW) Ingrid diesel plant in Pililla, Rizal that it leased from British company Aggreko International Projects Limited (Aggreko). IPHI is a joint venture between ACEN Corp. and Marubeni Corp.

The Ingrid diesel plant has been providing critical services to the Luzon grid since October 2021, and has been helping stave off severe power outages especially during the dry season. Ingrid has maintained 100 percent availability during the peak dry season months from March to date.

“Ancillary Services are pass-through costs of NGCP. Nevertheless, the above ASPA rate is the result of Competitive Selection Process with the objective of providing lower AS costs for the benefit of the customers with ERC granting interim relief on the arrangement,” the notice read.

“NGCP shall implement the billing of the ASPA with IPHI based on the interim relief granted by the Commission effective June 2024 billing month (May 26, 2024 to June 25, 2024) for Luzon Customers.”

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