NGCP reviews new transmission rules, eyes next steps

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is evaluating newly issued transmission rules to protect grid integrity and ensure alignment with its concession agreement with the government. 

This follows the Energy Regulatory Commission (ERC)’s approval of implementing rules that allow entities other than the NGCP to finance and construct transmission assets needed for grid connection.

Under the new framework, qualified power generation companies may undertake developments identified by the Department of Energy as associated transmission projects (ATPs).

The rules likewise empower the National Transmission Corp. to implement priority transmission projects directly or tap other government agencies to carry out construction on its behalf.

ATPs and priority projects cover new transmission lines, substations, switchyards and other facilities required to accommodate additional power generation capacity.

The NGCP said it would take appropriate steps to preserve the integrity of the national transmission framework, consistent with its rights, obligations and responsibilities under Republic Act 9511.

RA 9511 grants the NGCP a 50-year franchise to operate, manage and maintain the state-owned power grid, as well as transmit electricity through the country’s high-voltage backbone system.

“The NGCP recognizes the importance of timely transmission development in support of the country’s energy security objectives,” the grid operator said in a statement yesterday.

In adopting the new rules, the ERC underscored the urgent need to accelerate transmission infrastructure development, citing persistent delays that have prevented new power plants from fully delivering their capacity to the grid. 

“Through these implementing rules, we are providing a clear regulatory pathway to enable critical transmission projects to be completed faster while maintaining transparency, accountability and consumer protection,” ERC chairman and CEO Francis Saturnino Juan said.

The new framework sets clear terms and conditions for project approvals, construction timelines, turnover of facilities to the transmission network provider and mechanisms for cost recovery. 

“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy and ultimately contributing to a more secure, reliable and affordable electricity system,” Juan said.

“At the same time, the ERC will continue to conduct prudency reviews and allow only just and reasonable costs to be recovered and passed on to consumers,” he added.