NGCP Procurement Report Submission Deadline Extended

The Energy Regulatory Commission (ERC) has granted a request from the National Grid Corporation of the Philippines (NGCP) to provide an explanation next month as to why it should not be penalized for violating the government’s Auxiliary Services (AS) procurement directive.

“The Commission is granting the extension petition filed by the NGCP. Accordingly, the Commission reiterates its directive to the NGCP to submit a verified explanation by November 1st without further extension,” the three-page ERC order reads.

The ERC stated that it has given the NGCP a reasonable timeframe to comply with the ERC directive to submit a verified explanation in accordance with the ERC’s Sept. 12 order. “However, given the circumstances raised by the NGCP in its petition, the commission is giving it one last opportunity to comply with said directive.”

The ERC stated that if the NGCP did not comply with the requirements, it would proceed to resolve the case based on the recorded evidence. “The commission should monitor the NGCP’s compliance with previous directives.”

On October 17 last year, the NGCP filed a motion to extend the deadline, arguing that it was due to the large number of related records and the need for its staff to extract and study the data needed to prepare its explanation. He asked for another 15 days or until November 1st.

It may be recalled that the ERC ordered the NGCP to explain why no administrative penalty should be imposed for possible violations of the Philippine Grid Code, the Ancillary Services Procurement Plan, and RA 9136.

The ERC said the company failed to comply with three sections of Department of Energy (DOE) Circular No. 2021-10-0031 titled “Defining a System Operator’s Policy for Transparent and Efficient Procurement of Ancillary Services.” This is Section 4.2, requiring the NGCP to obtain approval from the DOE for its SAA Procurement Plan; Sections 7.4 and 7.5 require the NGCP to seek DOE approval for the Terms of Reference (TOR) for the AS Competitive Selection Process (CSP); and Sections 7.1 and 7.11 requiring the NGCP to complete the AS CSP within six months of the Circular becoming effective.

While the ERC noted that the NGCP has already released the ToR and schedule for AS CSP, the latter has not yet followed these provisions in existing policies adopted by the Department of Energy in accordance with its mandate as a policy maker.

Ancillary services are required to support the transfer of power and energy from resources to loads while maintaining reliable network operation in accordance with utility best practices and existing regulations.