As it unveils Leyte grid expansion projects

TACLOBAN CITY – The National Grid Corporation of the Philippines (NGCP) on Thursday, July 16, distanced itself from the looming increase in electricity rates in Eastern Visayas, saying it does not set power prices or profit from higher electricity bills, even as it unveiled a series of transmission projects aimed at strengthening the Leyte power grid.
The clarification came following an earlier announcement by the Federation of Rural Electric Cooperatives in Region 8(FRECOR-8) that consumers in Eastern Visayas could expect higher electricity rates due to several factors, including increases in transmission and ancillary service charges, generation costs, and other pass-through expenses.
Speaking during the Power 101 forum in Tacloban City, NGCP spokesperson Atty. Cynthia Perez Alabanza said the corporation has been wrongly blamed whenever electricity rates rise, stressing that NGCP merely transmits electricity from power plants to distribution utilities.
“We do not determine electricity rates and we do not benefit from increases in consumers’ power bills,” Alabanza said.
She explained that while transmission charges appear as one component of monthly electricity bills, NGCP’s transmission wheeling rates are regulated by the Energy Regulatory Commission (ERC) and are separate from ancillary service charges, which fluctuate depending on the operation of the power grid.
According to Alabanza, most adjustments in electricity bills are driven by changes in generation charges and ancillary service costs, both of which are pass-through charges collected by distribution utilities.
Her statement came after FRECOR-8 advised its member-consumer-owners of an expected increase in electricity rates, citing higher generation costs, transmission charges, and ancillary service fees that are beyond the control of electric cooperatives.
Amid the clarification, NGCP also presented ongoing and future transmission projects intended to improve the reliability and capacity of the power grid serving Leyte and the rest of Eastern Visayas.
Michael Baylosis, planning manager of NGCP’s Transmission Planning Division under its Project and Engineering Department, said the company is currently constructing the 230-kilovolt (kV) Babatngon-Palo Transmission Line Project, one of its major investments in Leyte.
The project is designed to reinforce power transmission to Tacloban City and neighboring areas, where electricity demand continues to rise.
It also includes the construction of a new 69-kV substation in Palo and the installation of a capacitor bank at the SEPALCO Solar Power Plant in Barangay Castilla, Palo, to improve voltage stability and system reliability.
NGCP is likewise installing additional transformers along the Tabango-Isabel and Maasin transmission corridors to strengthen the security and reliability of electricity transmission across Leyte.
Among its upcoming projects are the Tabango-Biliran 69-kV Transmission Line, the Maasin-Malinao 230-kV Transmission Line, the Sumangga 138-kV Substation and Transmission Project in Ormoc City, and the upgrading of existing substations and transmission facilities.
The company also plans to strengthen the Visayas grid by installing two additional submarine cables linking Cebu and Leyte, expanding the existing two-cable interconnection.
It will also extend the 230-kV transmission line from Ormoc to Babatngon and upgrade the Luzon-Visayas High-Voltage Direct Current (HVDC) system from monopole to bipole operation, effectively doubling its transmission capacity.
Baylosis said NGCP is also pursuing the development of a 230-kV transmission loop connecting Leyte, Bohol, and Cebu to provide alternative power routes during typhoons and other natural disasters, improving the resilience of the Visayas power grid.
The company also reported the completion of several transmission projects, including the Babatngon-Abucay 69-kV Transmission Line in 2025, the Ormoc-Lemon 69-kV Transmission Line in April 2026, and the Ormoc-Sumangga 69-kV Transmission Line in June this year.
The updates were presented during the Power 101 forum, which brought together journalists and local government information officers from across Eastern Visayas to improve public understanding of the country’s transmission system and clarify the respective roles of power generators, transmission operators, and distribution utilities in determining electricity costs.
ROEL T. AMAZONA, LIZBETH ANN A. ABELLA









