ERC Clarifies NGCP Grid Projects as Final Costs Remain Under Review

The Energy Regulatory Commission (ERC) clarified on Friday, May 23, 2025, that while it has granted approval for several capital expenditure (CAPEX) projects proposed by the National Grid Corporation of the Philippines (NGCP), the final costs for these projects have not yet been approved.

In a statement, ERC Chairperson and CEO Monalisa C. Dimalanta explained that the costs currently associated with the approved projects are used solely for the computation of permit fees and do not represent the final approved figures.

“As stated in the Commission’s various Orders covering these projects, the cost for each approved CAPEX project is currently considered only for the purpose of computing the permit fee and does not reflect the final cost as approved,” Dimalanta said.

The Commission underscored that all project costs will undergo thorough evaluation during NGCP’s regulatory reset process, in line with ERC Resolution No. 08, Series of 2022, also known as the Amended Rules for Setting of Transmission Wheeling Rates (RTWR). This process ensures that only prudent and reasonable expenses will be passed on to consumers.

The ERC has fast-tracked the approval of multiple NGCP CAPEX projects in recent months, particularly those aimed at addressing overloaded transmission lines and transformers, and enhancing grid reliability in Luzon and Visayas. These projects are also expected to help prevent load curtailments and power interruptions, amid increasing electricity demand.

Chairperson Dimalanta emphasized the importance of strengthening the country’s power grid while ensuring cost efficiency.

“These CAPEX projects are critical in strengthening our power grid, to ensure a more reliable and secure electricity supply for Filipino households, businesses, and industries. But at the same time, it is also important to emphasize that the final costs of these projects will still undergo careful review and deliberation by the Commission to ensure consumers pay only for what is necessary and reasonable,” she said.

The Commission reiterated its commitment to balancing infrastructure investment and consumer protection through transparent and evidence-based regulation.