The Energy Regulatory Commission partially granted Ingrid Power Holdings Inc.’s motion to reconsider its five-year ancillary services procurement agreement with the National Grid Corp. of the Philippines.
The ERC increased the allowable recovery for IPHI to P4.19 per kilowatt-hour from the previous P1.50, citing concerns raised by the company.
IPHI said the higher rate would ensure the plant’s viability amid increased costs.
The regulator had previously granted interim relief to IPHI and NGCP to implement their agreement for the 179.824-megawatt Pililia Diesel Power Plant in Rizal, subject to approved rates and conditions.
The approval doesn’t affect the evaluation of NGCP’s compliance with the Department of Energy’s ancillary service-competitive selection process.
IPHI said the ERC’s initial order substantially reduced and capped the rates, differing from its bid and the basis for NGCP’s award. The company argued the ERC’s denial of adjustments in variable operations and maintenance costs would force it to absorb losses and risks not contemplated in the agreement.
IPHI’s motion said its rates shouldn’t be compared with older agreements because of different conditions.
