There is no need for the National Grid Corporation of the Philippines (NGCP) to be a scaremonger as it can always ask the regulator, the Energy Regulatory Commission (ERC), to reconsider the decision affecting the so-called ancillary service (AS) agreements, the Department of Energy said on Tuesday.
This relates to NGCP’s apprehension over an ERC decision disallowing the extension of AS agreements while the competitive selection process (CSP) in underway. For the privately-owned manager of the state-owned electrical grid system, the refusal unnecessarily exposes household and industrial consumers to the high likelihood of power interruptions.
“All they need to do is file a motion for reconsideration with the ERC. There’s no need to be alarmist, okay? The ERC will hear the petition. You must not over worry yourselves.”
Energy Secretary Raphael Lotilla
Lotilla particularly noted the ERC decision was made prior to NGCP’s conduct of the CSP and that NGCP can always seek redress by filing a motion for reconsideration before the regulatory body.
The ERC decision was promulgated in December 2022 when the NGCP has not yet implemented the CSP for ancillary services.
“Since the CSP for AS is now nearing completion, the NGCP may file a motion for reconsideration before the ERC with updates on the CSP for AS,” the DOE reiterated.
As for the ERC, it released a statement saying it “awaits NGCP’s filing of an MR, which is provided for under the revised rules of practice of the commission” that then compels the regulatory body to revisit its ruling.
The NGCP warned on Monday the possibility of intermittent power interruptions due to the denial of its request.
NGCP previously sought DOE intervention on the matter to “avert avoidable power interruptions” that could happen in the absence of an extension of ancillary service agreements.
Ancillary servers (AS) are the available generating capacity meeting contingent power reserves when generating units trip or a transmission interconnection problem occurs.
Ancillary servers are necessary units allowing the NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system since fluctuations can damage sensitive equipment if the fluctuations are severe enough to pose a danger to the transmission system as a whole.
AS serves as the available generating capacity for dispatch to meet contingency reserve requirements when a power generating unit trips or a transmission interconnection problem occurs.
