The Energy Regulatory Commission (ERC) is demanding a formal explanation from Henry Sy, Jr. and Roberto Coyiuto’s National Grid Corporation of the Philippines (NGCP) over its failure to secure backup electricity sources when power plants go offline.
In a statement, the regulator took NGCP to task over its non-compliance with circulars from the Department of Energy on the contracting of ancillary services “to ensure grid security and stability.”
Per the rules of the Department of Energy, NGCP failed to “seek approval from the DOE on its Ancillary Service Agreement Procurement Plan,” gain DOE’s nod on the Terms of Reference for the competitive bidding for the ancillary power, and to finish the procurement within six months.
“Ancillary Services are necessary to support the transmission of capacity and energy from resources to loads, while maintaining reliable operation of the grid in accordance with good utility practice and existing rules. Meanwhile, the AS CSP is the process whereby ancillary service providers are awarded Ancillary Service contracts through transparent and competitive bidding in accordance with the rules and regulations set by government regulators,” the ERC said.
“While the ERC notes that NGCP has already issued the TOR and the schedule for the conduct of AS CSP, the latter has yet to comply with the abovecited provisions in existing policies adopted by the DOE pursuant to its mandate as a policy-making authority,” the regulator added.
NGCP has been given 15 days to submit a written response to ERC’s request.
Last week, the NGCP placed the Luzon grid under red alert for hours after seven plants went on emergency shutdown.