"We are still expecting the original parties which previously expressed interest, but we can say that there might be new ones," he said, albeit noting that the firm decision of the investors being eyed would still depend on how they would weigh the privatization package being offered to them.

Lotilla, along with other energy officials involved in the privatization process, noted that one very crucial regulatory breakthrough they are awaiting is the Energy Regulatory Commission’s (ERC) decision on TransCo’s bid for second regulatory reset covering the periods from 2006 to 2010.

The regulator has given all concerned parties, primarily TransCo and the Power Sector Assets and Liabilities Management Corporation (PSALM), until this January 20 to submit documentary evidence that would justify their claims as to what is the reasonable level of maximum allowable revenue (MAR) that should be set for the transmission firm.

There have been initial resentment on the result of ERC’s initial evaluation of TransCo’s application for MAR because of the tone set under the issued ‘draft determination’ that the amount may end up being slashed into roughly half from what was applied for.

TransCo’s transmission charges were first set by the ERC in 2003, the start of the first regulatory period.

The second regulatory period was originally set on January 1, 2006, but was moved to April next year.

Thereafter, the wheeling rates will be reset every five years.

Through the prescribed Transmission Wheeling Rates Guidelines, the ERC shall determine the concessionaire’s annual revenue requirement based on its operating and maintenance expenses, estimated tax payments, depreciation charges on assets used, and investors’ return on capital.

At the end of each year, the revenue cap will be compared with the actual revenue collection of the concessionaire, the difference of which will be the basis for adjusting the following year’s revenue cap.

The revenue cap would assure electricity consumers that fair electricity rates would be charged even after the privatization of TransCo.

The country’s transmission development for the five-year period 2006 to 2010 is estimated to cost 0 million.

Meanwhile, under the proposed bidding terms for TransCo, a minimum bid price or "reserve price" would be set before the bids are opened.

PSALM is targeting to schedule the bidding by April this year or upon issuance of a ruling by the ERC on the transmission firm’s MAR application.