NGCP reviews new ERC rules allowing third-party transmission builds, citing its exclusive concession. The change targets grid bottlenecks but raises legal questions.
Alpha Score of 56 reflects moderate overall profile with moderate momentum, moderate value, moderate quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
The National Grid Corp. of the Philippines (NGCP) said Friday it is reviewing new Energy Regulatory Commission (ERC) rules that would let other entities build transmission facilities, citing its existing concession agreement with the government.
NGCP, a privately owned consortium, operates, maintains and develops the country's state-owned power transmission grid. The company said it would take steps to protect the integrity of the transmission system.
“NGCP recognizes the importance of timely transmission development in support of the country’s energy security objectives,” the company said in a statement. It added that it is evaluating the rules in relation to its rights and obligations under its concession agreement, Republic Act 9511 and other applicable laws.
The ERC approved the rules on June 11. They allow entities other than NGCP to finance and construct Department of Energy-designated associated transmission projects and priority projects. Those include transmission lines, substations, switchyards, and other facilities needed to connect new power generation capacity and strengthen the grid.
The rule change raises a question about NGCP's concession, which grants the company the exclusive right to develop and operate the country's transmission network. The ERC's move effectively opens that role to third-party developers for certain projects.
NGCP did not say whether it would challenge the rules legally. The company said it is still reviewing the text of the ERC resolution.
The Philippines has struggled with transmission bottlenecks that delay new power plants from reaching the grid. The ERC's new framework is designed to accelerate construction of lines and substations that NGCP has not built on schedule. Critics of NGCP have pointed to project delays as a factor in the country's tight power supply.
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The ERC has not commented on NGCP's statement. The regulator typically allows a 15-day period for stakeholders to file motions for reconsideration after a new rule is published.
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