Synergy Grid and Development Philippines Inc. (SGP), the indirect controlling shareholder of the National Grid Corporation of the Philippines (NGCP), announced a 34 percent increase in operating services revenue for the nine months of the year on account of the Interim Higher Revenue Allowable Cap (iMAR).
In a regulatory filing, SGP said its operating services revenue amounted to 48.67 billion pesos at the end of September compared to 36.35 billion pesos in the same period last year.
“This is due to the higher iMAR2020 approved by the Energy Regulatory Authority, effective January 1, 2020 and the recognition of additional new iMAR 2020 for 2020 and 2021,” she said.
MAR indicates the maximum revenue that a network operator is allowed to earn from transmissions. For the year 2020, ERC has granted NGCP temporary relief for the implementation of iMAR2020 in the amount of 51,471,130,000 pesos.
NGCP’s iMAR, which is used for transmission projects and other network investments based on the Department of Energy’s (DOE) Energy Development Plan, is subject to ERC approval for each regulatory period.
The same report stated that the company also concluded new construction contracts worth 30.19 billion pesos through the end of September. These construction contracts include substation projects, transmission line projects, and facility repair and expansion.
NGCP is SGP’s sole operating asset. It holds the sole and exclusive franchise and franchise to operate the transmission network in the Philippines, connecting power generators and distribution facilities to deliver electricity to power distributors and cooperatives across the country.
In the next 13 years, NGCP is committed to investing approximately EGP 440 billion in 211 projects aimed at supporting the country’s growing electricity demand and making the country’s energy backbone consistently reliable.