DOE’s Lotilla on NGCP's power interruption warning: No need to be alarmist

Energy Secretary Raphael Lotilla on Tuesday urged the National Grid Corporation of the Philippines (NGCP) to immediately file a motion for reconsideration after the Energy Regulatory Commission (ERC) denied its request for monthly extensions on ancillary services agreements.

“All they need to do is file a motion for reconsideration with the ERC. There’s no need to be an alarmist,” Lotilla told reporters in a chance interview.

“The ERC will hear the petition. We must not overworry ourselves,” the Energy chief said.

On Monday, the NGCP warned of possible power interruptions this summer season after the ERC denied its request for monthly extensions on ancillary service agreements.

The grid operator said the denial of the month to month extensions on ancillary services agreements came after it accepted and opened bids for ancillary services for Luzon on March 14, Visayas on March 15, and Mindanao on March 16.

The NGCP said it expects to formally award contracts to winning bidders by April 18, 2023, but a provisional approval from the ERC on the Ancillary Service Procurement Agreements (ASPAs) may not be expected earlier than June.

In a separate statement, the DOE said that the ERC’s decision denying the NGCP’s monthly extensions of ancillary services agreements was promulgated back in December 2022.

“At that time, NGCP had not yet implemented the Competitive Selection Process (CSP) for Ancillary Service (AS),” the Energy Department said.

“Since the CSP for AS is now nearing completion, the NGCP may file a motion for reconsideration before the ERC with updates on the CSP for AS. At the end of the day, the NGCP has the responsibility of maintaining grid reliability that requires ancillary service, and DOE expects that NGCP will live up to,” the DOE said.

The ERC, likewise, said it will wait for the NGCP to file an appeal on the decision.

“ERC awaits NGCP’s filing of a Motion for Reconsideration, which is provided for under the Revised Rules of Practice of the Commission, so we can officially revisit our ruling,” ERC Commissioner and Spokesperson Floresinda “Rexie” Digal said in a mobile message.

The NGCP said it has already written to the DOE to intervene in the matter.

Senator Sherwin Gatchalian, vice chairperson of the Senate Energy Committee, said that ERC chief Dimalanta assured him that the regulator “will see to it” that the agreements will be approved immediately as he urged the ERC to approve agreements within 30 days.

The DOE projected that the Luzon Grid would be placed under yellow alert during weeks 13 and 17 of this year (April), all the weeks of May, and weeks 22 and 23 (June), indicating that the grid has thin reserves based on supply and demand.  —VAL, GMA Integrated News