NGCP takes over TransCo's power transmission grid
by Jennifer C. Tilos
Dumaguete City (5 February) -- The National Grid Corporation Of The Philippines (NGCP) has officially taken over the nationwide transmission grid operations starting January 15, 2009.
According to Walter W. Brown, President and Chief Executive Officer of NGCP, this privately-owned corporation is a consortium of Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corp. of China.
Brown said, the corporation won the competitive public bidding in December 2007 for the 25-year concession agreement and extendable for another 25 years to operate, manage, and expand the high voltage power grid.
The Philippine Congress granted NGCP a 50-year franchise, which was signed into law by President Gloria Macapagal-Arroyo on December 1, 2008.
As such, NGCP is now the official operator of the franchise formerly held by the government-owned and controlled National Transmission Corporation (TransCo) to operate and maintain the country's power transmission grid.
A remaining TransCo organization has been organized to ensure NGCP's compliance with the terms and conditions of the concession agreement and monitor its compliance with regulatory laws, rules and regulations; handle all existing cases, including right of way claims and other actions and claims retained by TransCo under the concession agreement.
This also include divest remaining sub-transmission assets to qualified distribution utilities; and provide consultancy and/or other technical services for the management of the power distribution systems.
The President of NGCP assured the public that this privatization and other reforms in the power industry are being undertaken for the benefit of power customers nationwide as envisioned by the Electric Power Industry Reform Act of 2001.
With that, the new operator of the national power transmission grid also asked for continued cooperation and support among electric consumers and stakeholders as it promised to transform itself into a better, more efficient, world-class organization.
Meanwhile, it has been noted that Philippines is a forerunner in wind energy generation. In 2008, it remained sixth in Asia and the only Southeast Asian country ramping up wind power alongside its industrialized neighbors in the region. According to the Department of Energy, the Philippines has good potential for wind power due to its location on the fringes of the Asia-Pacific monsoon belt. (PIA/jct) [top]
