THE NATIONAL Grid Corp. of the Philippines (NGCP) has warned of potential energy interruptions this summer season after the Energy Regulatory Commission (ERC) junked its request to increase its month-to-month ancillary providers (AS) agreements.
The grid operator stated in a press release that a lot of its AS offers have already expired, forcing it to increase present agreements on a month-on-month foundation “to ensure the sufficiency of services while the procurement process is ongoing.”
“With ERC’s denial of this interim arrangement, our hands are tied. The Philippine transmission grid shall be vulnerable to power interruptions resulting from an artificial lack of AS. Without an existing AS procurement agreement (ASPA), NGCP cannot nominate power plants to provide the critical services,” NGCP stated.
The ERC’s rejection got here because the aggressive choice course of for ASPAs is now underway.
The NGCP stated it has already accepted and opened bids for ancillary providers for Luzon, Visayas, and Mindanao earlier this month. It is at present evaluating the bids and expects to formally award the contracts to the profitable bidders by April 18.
However, the ERC’s provisional approval of the brand new ASPAs beneath the aggressive choice course of is probably not anticipated sooner than June.
ERC Chairperson and Chief Executive Officer (CEO) Monalisa C. Dimalanta stated it’s going to revisit its ruling after the NGCP appeals the choice.
“ERC awaits NGCP’s filing of a motion for reconsideration, which is provided for under the revised rules of practice of the Commission, so we can officially revisit our ruling,” Ms. Dimalanta stated in a Viber message on Monday.
In a March 25 letter to Energy Secretary Raphael P.M. Lotilla, NGCP President and CEO Anthony L. Almeda urged the Department of Energy to authorize the month-on-month extension of present ASPAs.
Mr. Almeda stated the corporate will file a movement for reconsideration on the grounds that the ERC circulars will apply solely to new ASPAs, not extensions of present ASPAs.
“Unless the ERC withdraws its Order, or the Department of Energy… authorizes the month-to-month extension of existing ASPAs by clarifying that Circular Nos. 2019-12-0018 and 2021-10-0001 do not apply to these contracts, the Philippine Grid will unnecessarily be vulnerable to ALD (automatic load dropping) caused by the artificial lack of ancillary service,” Mr. Almeda stated.
Ancillary providers “are necessary for NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system,” the corporate stated.
The NCGP stated it has at all times carried out the procurement of ancillary providers “with good faith,” with a purpose to get the perfect providers for the least value.
“With this disappointing development, this leaves us with no other option. If we sign interim extensions, we expect the ERC to issue us yet another show-cause order. If we do not, we will be unnecessarily subjecting consumers connected to the grid to avoidable and damaging fluctuations or worse, interruptions,” NGCP stated.
The Energy division final week stated that it now initiatives a complete of 15 yellow alerts on the Luzon grid this yr, larger than its earlier projection of 12.
Meanwhile, the DoE has urged the general public to observe vitality effectivity and conservation measures amid an anticipated surge in energy demand through the summer season months. — A.E.O. Jose
