Scatec Secures Government Nod For Ancillary Services Tariff In The Philippines, Retroactive From Earlier Date

Scatec ASA, through its joint venture with Aboitiz Power (SNAP) in the Philippines, has received formal regulatory approval from the Energy Regulatory Commission (ERC) for the rate associated with its long-term ancillary services (AS) contracts for contingency reserves. The approved rate is PHP 2.25 per kilowatt-hour (kWh), an increase from the previously applied rate of PHP 1.5 per kWh.

This revised rate will officially come into effect from July 2025. However, the approval includes a retroactive component, which will result in approximately NOK 231 million in additional revenue attributable to Scatec. These retroactive revenues will be recognized in the second quarter of 2025 and are expected to be received through periodic payments over the subsequent 12 months.

Scatec was awarded the long-term ancillary services contracts at the beginning of 2023, with operations commencing in September 2023. Since the start of the contract, Scatec has been delivering the required power volumes under the new agreement. However, payments were initially made at the lower rate, pending regulatory approval of the higher awarded rate. With this approval now granted, Scatec will begin receiving payments based on the higher rate, including the retroactive adjustment.