The Department of Energy (DOE) called on the National Grid Corporation of the Philippines (NGCP) to fulfill its obligation in securing the power supply reserves in the country.
In a statement issued by the department on Monday (June 15), the DOE “firmly” called on the NGCP to “comply with its obligations, as the System Operator (SO), to secure urgently needed Ancillary Services (AS) or power supply reserves and reduce its transmission fee, instead of making excuses to justify continued non-compliance with the Department’s issuances.”
“Under Department Circular (DC) DC2019-12-0018, “Adopting a General Framework Governing the Provision and Utilization of Ancillary Services in the Grid”, the NGCP is mandated to procure 100% firm power reserves, as well as engage in the forward contracting of reserve requirements to ensure grid reliability,” the department said.
The NGCP initially announced that the electricity fees might increase if they “comply” with the DOE’s orders. However, DOE Secretary Alfonso Cusi asserted that the department has been proactively “seeking to protect and uphold the welfare of consumers through our policies and programs.”
“It is not for NGCP to say that electricity will be more costly if they comply. Having the required reserves is not optional. If NGCP wants to help consumers, be magnanimous, and lower the cost of electricity, they should just reduce their transmission fee, reduce the Weighted Average Cost of Capital (WACC), and finish the transmission projects on time,” he responded.
Cusi emphasized that the department issued policies for the companies to comply in order to find solutions for the recurring power interruptions
“The DOE emphasizes that the operation of our national power grid is a matter of national security. It is time for the government to take back our grid’s Systems Operations,” he concluded.
Report from Naomi Tiburcio/NGS-rir
