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Development of the Asset Valuation Handbook and the Development of Guidelines for Transmission Planning - Philippines

The optimised depreciated replacement cost valuation of a utility is a critical component of the regulatory reset process applied to private distribution utilities in the Philippines. In support of this process, the Energy Regulatory Commission (ERC) identified the need to develop a comprehensive regulatory asset base valuation handbook which would provide the necessary directions for conducting the valuations in order to ensure that there will be a high degree of consistency not only in the method applied but also in the replacement costs of assets. Another rule/program development that NCL separately undertook for the ERC was the development of the transmission planning guidelines for the National Grid Corporation of the Philippines (NGCP). The guideline focused not only on efficient in-depth engineering planning for the short and long-term, but also planning in order to address congestion in the electricity spot market. The guideline has taken into account the views of key stakeholders in the power industry keeping in mind the objective of ensuring the quality, reliability, security and affordability of electricity transmission services.