Deadline for NGCP report on procurement extended
BY LENIE LECTURA – OCTOBER 25, 2022
from Business Mirror
The Energy Regulatory Commission (ERC) has granted the request of the National Grid Corporation of the Philippines (NGCP) to submit next month its explanation as to why it should not be penalized for violating the government’s directive related to the procurement of ancillary services (AS).
“The Commission grants the motion for extension filed by NGCP. Accordingly, the Commission reiterates its directive for NGCP to submit its verified explanation on or before November 1 without further extension,” the ERC said in its three-page order.
The ERC said it has given NGCP a reasonable period to comply with the ERC’s directive to submit its verified explanation pursuant to ERC’s order dated September 12. “However, given the circumstances raised by NGCP in its motion, the commission gives it the last opportunity to comply with the said directive.”
Should NGCP fail to comply, the ERC said it will move to resolve the case based on evidence on record. “The Commission shall monitor the compliance of NGCP with the foregoing directives.”
NGCP filed last October 17 a motion for extension wherein it alleged that due to voluminous records involved and the need of its personnel to retrieve and examine the data necessary to prepare its explanation. It asked for an additional 15 days or until November 1.
It can be recalled that the ERC ordered NGCP to explain as to why no administrative penalty should be imposed for its possible violation 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 the Department of Energy’s (DOE) Department Circular No. 2021-10-0031 entitled, “Prescribing the Policy for the Transparent and Efficient Procurement of Ancillary Services by the System Operator”. These are Section 4.2 requiring NGCP to seek approval from the DOE on its Ancillary Service Agreement Procurement Plan; Sections 7.4 and 7.5 mandating NGCP to seek the approval of the DOE on the Terms of Reference (TOR) of the AS competitive selection process (CSP); and Sections 7.1 and 7.11 requiring NGCP to complete the AS CSP within six months from the effectivity of the circular.
While the ERC noted that NGCP has already issued the TOR and the schedule for the conduct of AS CSP, the latter has yet to comply with the said provisions in existing policies adopted by the DOE pursuant to its mandate as a policy-making authority.
Ancillary services are necessary to support the transmission of capacity and energy from resources to loads, while maintaining reliable operation of the grid in accordance with good utility practice and existing rules.
