SGP operation services revenues up 34%

BY LENIE LECTURA – NOVEMBER 18, 2022
from Business Mirror

Synergy Grid and Development Philippines Inc. (SGP),  the indirect controlling shareholder of the National Grid Corporation of the Philippines (NGCP), reported a 34-percent increase in operation services revenues for the nine months of the year on account of higher Interim Maximum Allowable Revenue (iMAR).

In a regulatory filing, SGP said its operation services revenues hit P48.67 billion at end-September versus P36.35 billion in the same period a year ago.

“This is due to higher iMAR2020 approved by the Energy Regulatory Commission, effective January 1, 2020 and the recognition of incremental new iMAR 2020 for 2020 and 2021” it said.

The MAR refers to the maximum revenue that the grid operator is allowed to earn from its transmission operations. For 2020, the ERC has granted NGCP interim relief to implement an iMAR2020 in the amount of P51,471,130,000.

NGCP’s iMAR, which are used for transmission projects and other grid investments based on the Department of Energy (DOE)’s Power Development Plan, are subject to ERC’s approval for every regulatory period.

The same report stated that the company also entered into new construction contracts amounting to P30.19 billion as of end-September. These construction contracts include substation projects, transmission line projects, repairs and expansion of facilities.

NGCP is SGP’s sole operating asset. It holds the sole and exclusive concession and franchise for the operation of the Philippines’ transmission network, linking power generators and distribution utilities to deliver electricity to power distributors and cooperatives nationwide.

In the next 13 years, NGCP is committed to invest approximately P440 billion across 211 projects which are aimed to support the growing electricity demand in the country and to make the country’s power backbone continuously reliable.