NGCP seeks ERC okay on new services deal

MANILA, Philippines - National Grid Corporation of the Philippines (NGCP), the operator of the country’s power transmission highway, has asked the Energy Regulatory Commission (ERC) to approve its ancillary services procurement agreement (ASPA)with power producers to help lower power cost as much as 40 percent.

NGCP said it plans to enter into an ASPA with Trans-Asia Power Development Corp., Trans-Asia Oil and Energy Development Corp., and Panasia Energy Inc.

“As part of its continuing efforts to improve grid reliability while ensuring minimal impact on power rates, the NGCP has taken steps to lower the overall cost of ancillary services by as much as 40 percent,” it said.

NGCP has the crucial role of providing ancillary services to all transmission users of Luzon, Visayas and Mindanao grids as required by the Electric Power Industry Reform Act of 2001 (EPIRA), the Philippine Grid Code (PGC) and the Wholesale Electricity Spot Market (WESM) rules.

Ancillary services are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code”.

Such ancillary services are needed to ensure reliability in the operation of the transmission system and consequently, in the reliability of the electricity supply in the grids.

It is the responsibility of NGCP to adequately serve generation companies, distribution utilities and suppliers requiring transmission service and/or ancillary services through the transmission system.