ERC Directs NGCP to Explain Delays in Transmission Projects Completion
The Energy Regulatory Commission (ERC) directed the National Grid Corporation of the Philippines (NGCP) to explain the causes of delays of the various Transmission Projects it sought approval from the regulator. The ERC’s directive was contained in thirty-three (33) Orders issued by the Commission to NGCP corresponding to the projects that have been approved by the ERC.
“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. The NGCP’s explanation will shed light on the status and reason/s for the delay of the completion of the thirty-three (33) transmission projects that we have already approved
”, said ERC Chairperson and CEO Agnes VST Devanadera.
In a relevant communication, the ERC also directed the NGCP to comply with the requirement of R.A. 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).
The NGCP under the EPIRA, 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 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
”, ERC Chair Devanadera added.