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Arroyo signed RA 9136 which is also known as the Electric Power Industry Act or EPIRA
law to save the ailing energy industry. It introduced two major reforms: the restructuring of
the electricity supply industry and the privatization of the National Power
Corporation (NPC). It also leads to the creation of another state-owned
corporation named National Transmission Corporation (TransCo) which turned over the
NPC's management, ownership, construction, expansion, and maintenance of the
transmission facilities.
On December 12, 2007, 2 consortia bid for a 25-year license to run the Philippine
power grid - privatization of the management of TransCo: the consortium of Monte Oro
Grid Resources Corp., led by businessman Enrique Razon, comprising the State Grid
Corporation of China, and Calaca High Power Corp., WON in an auctionconducted by the
Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the
highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San
Miguel Energy, a unit of San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG
Aurora BV and Malaysia’s TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO
remarked: “We are very happy about the successful turnout of the bidding for TransCo.
PSALM handled the privatization of the government’s transmission business with utmost
transparency and judiciousness.
On January 15, 2009, it officially started its operations and management over the national
transmission system, with Walter A. Brown as the company's first president. It continued
to do all transmission projects that were planned or unfinished by TransCo on its first few
years and makes or plans any new projects through the Transmission Development Plan
(TDP).
On June 2010, Henry Sy, Jr. was appointed as its second president which replaced
Walter A. Brown.
On May 2017, TransCo accused the company from violating the terms of its
contract by supposedly making too much money from its operations of the country’s
electricity grid. Executive Secretary Salvador Medialdea pointed out that, if indeed NGCP
had violated the terms of its contract by profiting unduly from the operations of the power
grid such as allowing telecommunications firms to mount their fiber optic cables on the
transmission towers.
On March 7, 2018, Henry Sy, Jr. resigned as president and CEO, with Chief
Administrative Officer Anthony Almeda named as the company's new president.
Unlike outright sale, the concession agreement allowed the government to keep
ownership of the transmission assets through TransCo, in accordance with Section 8 of
Electric Power Industry Reform Act (EPIRA) or Republic Act 9136 which states that no
person, company, or entity other than TransCo who shall own any transmission
facilities. Its franchise only covers the operations, maintenance, and expansion of the
power grid. It officially started operations on January 15, 2009. Assuming it secures a
renewal, it has a total of 50 years and will end on December 1, 2058. Under its franchise,
it 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.
The National Grid Corporation of the Philippines has an Energy Industry Partners.
The following are: The Department of Energy (DOE) is the executive department of
the Philippine Government responsible for preparing, integrating, manipulating,
organizing, coordinating, supervising and controlling all plans, programs, projects and
activities of the Government relative to energy exploration, development, utilization,
distribution and conservation. The Energy Regulatory Commission (ERC), a world class
and independent electric power industry regulator that equitably promotes and protects
the interests of consumers and other stakeholders, to enable the delivery of long-term
benefits that contribute to sustained economic growth and an improved quality of life. The
Power Sector Assets and Liabilities Management Corporation (PSALM). The National
Power Corporation (NPC) is a Philippine government-owned and controlled
corporation that is mandated to provide electricity to all rural areas of the Philippines by
2025 (known as "missionary electrification"), to manage water resources for power
generation, and to optimize the use of other power generating assets. The Philippine
National Oil Company (PNOC) is an energy company created on November 9, 1973 as
a government-owned and controlled corporation founded under martial
law Presidential Ferdinand Marcos to supply oil to the Philippines. Since then, its charter
has been amended several times to include exploration, exploitation and development of
all energy resources in the country. The National Transmission Corporation (TransCo) is
a Philippine government-owned and controlled corporation created in 2001 by the Electric
Power Industry Reform Act (Republic Act 9136) and a corporate entity wholly owned by
the Power Sector Assets and Liabilities Management (PSALM). It is the owner of
the country's power grid that is being operated, maintained, and developed by
the National Grid Corporation of the Philippines (NGCP). The National Electrification
Administration (NEA) is a Philippine Government-Owned and Controlled
Corporation (GOCC) attached to the Department of Energy tasked in the full
implementation of the Rural Electrification program (REP) of the Philippine
government and reinforce the technical capability and financial viability of the 121 rural
Electric Cooperatives (ECs). The Wholesale Electricity Spot Market (WESM), and the
MERALCO is an electric power distribution company in the Philippines. It is Metro
Manila's only electric power distributor and holds the power distribution franchise for 22
cities and 89 municipalities, including the whole of the National Capital Region and
the exurbs that form Mega Manila.
NGCP has the crucial role of linking power generators and distribution utilities to
deliver electricity where it is most needed. Its network of interconnected transmission
towers and substations serves as the highway where electricity travels from various
energy sources to the smaller thoroughfares of distribution utilities and electric
cooperatives until it reaches the households.
NGCP's task is to ensure that the country's transmission assets are in optimal
condition to convey safe, quality, and reliable electricity. NGCP does this through regular
inspection and repair of lines and substations, clearing of Right-of-Way obstructions, and
timely restoration during and after natural disasters.
Reliability of power is the company's utmost priority so it closely monitors the grid
and immediately responds to any system disturbance. NGCP acts as System Operator
that balances the supply and demand of power to maintain the quality of electricity that
flows through the grid.
Building new transmission lines and expanding substation capacity are equally
important as increasing power supply. NGCP ensures that the grid is prepared whenever
new plants come online and when the demand for power in a certain area increases by
anticipating these scenarios and constructing new facilities. All of NGCP's projects are
well laid out in its 10-year Transmission Development Plan.
NGCP's nationwide operations is one of the largest in the country, with more than
21,000 circuit kilometers of lines, 20,000 transmission towers, and 140 substations. The
company ensures that its services are available when and where it is needed.
Luzon
Composed of Metro Manila, North Luzon, and South Luzon, the largest grid in the country
accounts for 74% of the country's total power demand.
North Luzon
Visayas
The interconnected island grids of Cebu, Negros, Panay, Leyte, Samar, and Bohol
compose the Visayas grid. The region accounts for 14% of the country's power demand.
Visayas
North Luzon