Cebu-Bohol link done this year

The National Grid Corp. of the Philippines (NGCP), which solely operates the country’s transmission assets, confirmed that the full energization of the major power lines connecting Cebu and Bohol will happen before the end of the year.

“We have lots of projects in the pipeline, there is one that nears completion and within the year, we can announce the full completion of the Cebu-Bohol transmission project,” NGCP spokesperson Cynthia Alabanza said at a press briefing on Thursday. 

With 600 megawatts of transfer capacity, the Cebu-Bohol 230 kV Interconnection Project will enhance supply reliability in the Bohol Grid by linking it directly to Cebu's bulk power generation, supplementing the existing Leyte-Bohol submarine cable.

The project is particularly significant for Bohol, where rising electricity demand due to growing tourism, requires improved power infrastructure. 

Likewise, the project is expected to alleviate congestion in the Leyte-Bohol 138 kV interconnection, potentially lowering electricity costs for consumers in the region.

In the same briefing, Alabanza clarified that the higher transmission rate this September, which was pointed as the culprit that cause power rates increase, was due to higher Ancillary Services (AS) rates stemming from the resumption of the AS Reserve Market (AS-RM). 

Transmission wheeling rates, which NGCP charges for delivering power, decreased by 5.5 percent, dropping from 50.38 centavos per kilowatt-hour (kWh) in July to 47.61 centavos per kWh in August.

However, AS rates for August surged by 125.92 percent, rising to 61.27 centavos per kWh from 27.12 centavos per kWh in July, reflecting the resumption of the AS-RM on 5 August. Notably, it still does not include the 70 percent of the AS costs from the March billing period that remains unsettled.

On 9 May, the ERC partially lifted the suspension on AS RM settlement amounts, approving a 30 percent partial settlement for the March billing period to mitigate the spike in AS charges.

According to Alabanza, the NGCP did not profit from AS and did not benefit from the rate increase. 

The AS cost is a pass-through expense, with generating companies benefiting from the rise.

Ancillary Services, on the other hand, are essential for balancing and stabilizing the grid during power supply-demand imbalances.