Business Mirror
WEDNESDAY, 21 SEPTEMBER 2011 20:47
THE National Grid Corp. of the Philippines (NGCP)—the country’s sole power lines concessionaire—is seeking the Energy Regulatory Commission’s (ERC) approval to acquire the transmission assets of Metrobank Group’s power unit, the Cebu Energy Development Corp. (CEDC), for P216.22 million.
In its application to the ERC, NGCP said CEDC’s assets perform transmission functions that must be transferred to the transmission concessionaire as mandated by the Electric Power Industry Reform Act (Epira) of 2001 and its implementing rules and regulations.
NGCP cited what it described as CEDC’s lack of necessary expertise, resources and capability to operate and maintain these assets in compliance with the standard and procedures stipulated under the Philippine Grid Code.
In the absence of technical expertise, according to NGCP, the reliability and security of the grid may be put at risk.
NGCP pointed out it is to the best interest of all power stakeholders that ownership be transferred, owing the capacity of CEDC’s facilities’ capacity to maintain high-voltage transmission. It also emphasized the need to immediately turnover the ownership, operations and maintenance of the CEDC’s transmission assets to NGCP upon payment.
NGCP pointed out that the Epira prohibits a generation company from owning a transmission facility. CEDC owns a 246-megawatt coal-fired power plant in Cebu City. NGCP added CEDC’s assets play a vital role in the configuration of the Visayas grid, as its reliability and security must always be ensured.
NGCP said as concessionaire of the National Transmission Corp., it not only has the necessary resources, but also has the mandate and expertise to operate and maintain the CEDC’s transmission assets. --P. Isla
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