ERC opens transmission projects to non-NGCP builders

The Energy Regulatory Commission (ERC) has opened the country's transmission sector to greater private participation, allowing entities other than the National Grid Corp. of the Philippines (NGCP) to finance and build critical grid infrastructure.

The regulator said Friday that the new rules under ERC Resolution No. 18, Series of 2026, will help ease bottlenecks that have slowed the connection of new power plants and limited the delivery of electricity to consumers.

The ERC adopted implementing rules governing the development, ownership, and operation of point-to-point limited transmission facilities, as well as the financing and construction of transmission projects by entities other than the transmission network provider.

“Through these Implementing Rules, we are providing a clear regulatory pathway to enable critical transmission projects to be completed faster while maintaining transparency, accountability, and consumer protection,” ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said.

The framework allows entities other than NGCP to finance and construct projects identified by the Department of Energy as Associated Transmission Projects or Priority Projects, including transmission lines, substations, switchyards and other facilities needed to accommodate new generation capacity and strengthen the national grid.

Qualified generation companies may finance and construct ATPs, while the National Transmission Corp. may undertake Priority Projects or tap government agencies, government-owned and controlled corporations, and private entities to build such projects on its behalf under DOE Circular No. DC 2026-02-0007.

The ERC said the rules seek to address delays in transmission development that have prevented power plants from delivering their full output to the grid despite being ready for operation.

The rules also establish requirements covering project approvals, construction schedules, facility turnover to the transmission network provider, and cost recovery mechanisms.

The ERC said it would retain authority to review and determine the fair and reasonable value of transmission projects before allowing any costs to be recovered from consumers.

The regulator said the new framework supports broader government efforts to strengthen energy security, accelerate the country's energy transition, and ensure the timely integration of new generation capacity needed to meet rising electricity demand.

“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy, and ultimately contributing to a more secure, reliable, and affordable electricity system.

At the same time, the ERC will continue to conduct prudency reviews and allow only just and reasonable costs to be recovered and passed on to consumers,” the ERC chief said.