ERC orders NGCP to explain delays in completion of transmission projects

The Energy Regulatory Commission on Thursday ordered the National Grid Corp. of the Philippines to explain the delays in the completion of transmission projects which the company asked the regulator to approve. 

In a statement, the ERC said its directive was contained in 33 orders it issued to NGCP corresponding to the projects that have been approved by the commission.

“We have directed the NGCP to explain in detail the changes in the timeline and the events or activities that led to the modification of the transmission projects’ completion,” ERC chairperson and CEO Agnes Devanadera said.

“The NGCP’s explanation will shed light on the status and reason/s for the delay of the completion of the 33 transmission projects that we have already approved,” she added.

Sought for comment, NGCP spokesperson Cynthia Alabanza said the company would "cooperate with the ERC and provide them with all the needed information.”

The ERC also directed NGCP to comply with the requirement of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) to enter into Ancillary Services (AS) contracts and to update the commission of the status of its negotiation, if any, of the additional AS, particularly Contingency Reserve (CR). 

In a separate statement, the Department of Energy said NGCP failed to comply with the required AS contracts, which is 4% of the total demand.

The grid operator under the EPIRA law, particularly Section 8, in relation to Section 21, has the responsibility for the planning, construction and centralized operation and maintenance of its high voltage transmission facilities, including grid interconnections and Ancillary Services. 

The ERC said it has approved the Ancillary Services Procurement Plan (ASPP) which sets the required level of the AS.

“The completion of the NGCP transmission projects is a crucial element in ensuring the stability of electricity in the entire country.  In the same manner, there must be sufficient Ancillary Services Procurement Agreement (ASPA) in place to support the transmission of power capacity and energy from generation sources to consumption loads and maintain the reliable operation of the transmission system,” Devanadera said.  —NB, GMA News