The Energy Regulatory Commission (ERC) is processing the approval of so-called ancillary services procurement agreements (ASPAs) entered into by the National Grid Corporation of the Philippines (NGCP) through a competitive selection process.
Ancillary services (AS) serve as contingent reserve needs when a power generating unit trips or a transmission interconnection problem occurs.
Ancillary services also help manage power fluctuations and ensure the quality and reliability of power flowing through the system as fluctuations can damage sensitive equipment, cause automatic load dropping and a danger to the transmission system as a whole if severe.
ERC said the NGCP has issued notices of award for 36 ASPAs in mid-April of which 14 have been filed and scheduled for hearing.
Sixteen more of the ASPAs also await NGCP payment of filing fees as the ERC completes the pre-filing review of the remaining six applications.
After pre-filing review, the remaining six applications will undergo publication and payment of filing fees before being docketed for hearing at the ERC.
The ERC also received applications for automatic cost adjustment and true-up mechanisms for the period 2020 to 2022 from 48 distribution utilities (DUs) in Luzon.
The adjustments have to be filed before DUs are allowed refunds or rate hikes arising from over and under-recoveries.
Over and under-recoveries happen due to the lag between payment to generation companies and billing to customers.
The ERC said 20 Luzon distribution utilities have yet to submit their application, including Abra Electric Cooperative; Albay Electric Cooperative; First Bay Power Corp.; First Laguna Electric Cooperative; Ibaan Electric Corp.; Ilocos Norte Electric Cooperative; Isabela I Electric Cooperative; Isabela II Electric Cooperative; Kalinga-Apayao Electric Cooperative; Masbate Electric Cooperative; Nueva Ecija I Electric Cooperative; Nueva Vizcaya Electric Cooperative; Oriental Mindoro Electric Cooperative; Pangasinan I Electric Cooperative; Pampanga II Electric Cooperative; Quirino Electric Cooperative; San Fernando Electric Light and Power Co.; Ticao Island Electric Cooperative; Zambales I Electric Cooperative; and the Zambales II Electric Cooperative.
The DUs were reminded that failure to file complete over and/or under-recovery applications, along with the necessary supporting documents until May 30 results in administrative sanctions and penalties such as suspension of authority to impose pass-through charges.
