On 26 March 2025, the Energy Regulatory Commission (ERC) of the Philippines held its 1125th Regular Commission Meeting in Pasig City. The meeting addressed several cases, particularly concerning the National Grid Corporation of the Philippines (NGCP), with many decisions focused on Ancillary Services Procurement Agreements (ASPAs), revenue approvals, and performance incentive claims.
In ERC Case No. 2022-089 RC, the Commission resolved to adopt key parameters for NGCP’s fourth regulatory period from 2016 to 2020. These included a net efficiency adjustment of zero and a Weighted Average Cost of Capital (WACC) of 11.33%, using the “As Spent” approach. The Commission also approved the permanent setting of the Maximum Allowable Revenue (MAR) for 2015 at ₱43.08 billion and granted NGCP’s performance incentive reward of ₱783.06 million for 2014. Notably, Chairperson Monalisa C. Dimalanta and Commissioner Catherine P. Maceda dissented.
In another matter, the Commission denied the motions for reconsideration and document production in ERC Case No. 2014-155 RC. These motions had been filed by Visayan Electric Company (VECO) and NASECORE. Again, the dissenting views of the Chairperson and Commissioner Maceda were noted and will be reflected in the official decisions.
Regarding policy on permit fees for Force Majeure Event (FME) capital expenditure, the ERC decided that no fee would be charged for a project tied to Typhoon Ineng, as its approved cost resulted in a negative value.
The Commission also reviewed and approved several ASPAs involving NGCP and various power providers. Among these were Bulacan Power Generation Corp. for dispatchable reserves (₱0.5781/kW/hr), and Universal Power Solutions, Inc. for regulating reserves at multiple sites (₱2.08/kW/hr) and contingency reserves (₱1.25/kW/hr). Agreements with SN Aboitiz Power (for Binga, Magat, and Ambuklao plants) were approved for both dispatchable and contingency reserves with rates ranging from ₱0.85 to ₱2.25/kW/hr.
Therma Marine, One Subic, Mapalad Power, Western Mindanao Power, and King Energy Generation also received final authority for their ASPAs. Payment rates varied based on the type of reserve, generally ranging from ₱0.5457 to ₱2.9 per kilowatt per hour.
Several other ASPA applications, including those from Universal Power Solutions (for sites like Bataan, San Manuel, and Lamao), Giga Ace 4, and others, were deferred for further deliberation. These deferrals were due to pending issues and the need for further inputs from relevant departments.
The Commission agreed to further review the NGCP Performance Audit Reports before submitting them to the Office of the President by 2 April 2025. All resolutions, approvals, dissents, and deferred matters will be documented in full and made available on the ERC website for public reference.
