The National Grid Corporation of the Philippines (NGCP), which solely operates the country’s transmission assets, confirmed the full energization of the 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 a 600 MW transfer capacity, the Cebu-Bohol 230 kV Interconnection Project is set to 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, driven by growing tourism in the province’s popular white-sand beaches and diving spots, necessitates improved power infrastructure. 

Congestion buster

The project is also 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 being blamed for the increase in power rates, 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 P0.5038 per kilowatt-hour (kWh) in July to P0.4761 per kWh in August.

However, AS rates for August surged by 125.92 percent, rising to P0.6127 per kWh from P0.2712 per kWh in July, reflecting the resumption of the AS-RM on 5 August and 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.