National Grid Corporation of the Philippines
In 2001, legislators passed the landmark R.A. 9136, better known as the “Electric Power Industry Reform Act of 2001” or EPIRA which sought to save the ailing energy industry. The EPIRA introduced two major reforms: the restructuring of the electricity supply industry and the privatization of the government-owned National Power Corporation (NPC).
Restructuring called for the separation of the different components of the power sector: generation, transmission, distribution, and supply. Electricity rates were unbundled to allow consumers to see each individual component of the electricity service they are paying for. Generation was privatized through the sale of generation assets. Transmission was spun off to government owned National Transmission Corporation, in preparation for its eventual privatization via concession. Concession, unlike outright sale, allowed government, through the National Transmission Corporation (TransCo), to retain ownership of the the country’s transmission assets. Only the obligation to operate, maintain, and expand the grid was given to the private investors.
National Grid Corporation of the Philippines was incorporated in 2008 to assume the crucial responsibility of transmitting safe and reliable electricity throughout the country which was formerly held by the National Transmission Corporation (TransCo).
NGCP won the 50-year franchise granted by congress. NGCP has the right to operate and maintain the transmission system and related facilities, and the right of eminent domain necessary to construct, expand, maintain, and operate the transmission system. This franchise will enable NGCP, under the supervision of the Department of Energy (DoE) and the Energy Regulatory Commission (ERC), to undertake projects which will strengthen the power transmission network and fuel the continuous development of the country.
NGCP officially started operations as power transmission service provider in 2009.
National Grid Corporation of the Philippines engages in the expansion, operation, and maintenance of the electricity transmission network in the Philippines. It provides power delivery, centralized system operations and control of high-voltage transmission facilities, grid interconnections and ancillary services, and metering services. The company also provides technical services, particularly system studies, operation, and maintenance of customer facilities. It serves generators, private distribution utilities, electric cooperatives, government-owned utilities, ecozones, industries, and directly connected companies. The company operates in Metro Manila, Northern Luzon, and Southern Luzon in Luzon; Cebu, Negros, Panay, Leyte, Samar, and Bohol in Visayas; and Mindanao. ●