Power generators and National Grid Corp. of the Philippines will come out with a position paper to the Energy Regulatory Commission to address increased transmission costs and delays.
Luis Miguel Aboitiz, a member of board of trustees of the Philippine Independent Power Producers Association, told reporters at the sidelines of a Senate committee hearing Monday that “transmission lines for new power plants… is the biggest issue that affects everybody.”
Aboitiz cited the five-year plan of National Grid, operator of the country’s transmission network, which the ERC approved.
The power sector has raised concerns on the timely construction of transmission facilities to meet the demand of new plants.
“When the plan is approved… a new plant is announced to be started… so it’s not in the budget of NGCP. So how does NGCP put it in its budget? It has to go back to ERC and get approval,” Aboitiz said.
“But until ERC gives approval,” he said, the power producer pays for the connection inside the transmission grid.
Aboitiz said the power generator puts the cash up upfront and receives repayment over six to seven years with no interest.
“The impact is 30 percent to 40 percent of the cost of that line is absorbed by the generator. We’re not allowed to pass it on to consumers,” Aboitiz said.
He said PIPPA wants NGCP and ERC to approve a “budget for unforeseen transmission upgrades” resulting from the construction of new power plants.
Aboitiz said the Energy Department can only monitor the power plants but
“… the real one who can make the change is ERC, not (the Department of Energy) because this is a money issue.”
Current ERC rules do not allow recovery of carrying cost for “advances” by generators.