National Grid Corporation of the Philippines

The National Grid Corporation of the Philippines (NGCP) is a privately-owned corporation that was created on January 15, 2009 through RA 9511. It is a consortium of three corporations, namely Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and the State Grid Corporation of China. As the franchise holder, it is in charge of operating, maintaining, and developing the country's state-owned power grid, controls the supply and demand of power by determining the power mix through the selection of power plants to put online (i.e., to signal power plants to produce power, as power plants will only produce power or feed their power to the transmission grid when directed by NGCP). As a common carrier, it must provide non-discriminatory access to its transmission system. It is subject to the standards set by the Philippine Grid Code and the Transmission Development Plan. It also updates the daily power situation outlook for Luzon, Visayas, and Mindanao power grids by determining the available generating capacity, system peak demand, and operating margin (with operating margin is determined by subtracting the available generating capacity and system peak demand, and all of which are in units of MW or megawatts).
History.
On June 8, 2001, legislators passed and former president Gloria Macapagal-Arroyo signed RA 9136 which is also known as the Electric Power Industry Act or EPIRA law to save the ailing energy industry. It introduced two major reforms: the restructuring of the electricity supply industry and the privatization of the National Power Corporation (NPC). It also led to the creation of another state-owned corporation named National Transmission Corporation (TransCo) which turned over the NPC's management, ownership, construction, expansion, and maintenance of the transmission facilities.
On December 12, 2007, two consortia bid for a 25-year license to run the Philippine power grid - privatization of the management of TransCo: the consortium of Monte Oro Grid Resources Corp., led by businessman Enrique Razon, comprising the State Grid Corporation of China, and Calaca High Power Corp., WON in an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.905 billion), Dutch firm TPG Aurora BV and Malaysia’s TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."
On December 1, 2008, Gloria Macapagal-Arroyo signed the RA 9511 which gives it the franchise to operate and maintain the transmission facilities of TransCo.
On January 15, 2009, it officially started its operations and management over the national transmission system, with Walter A. Brown as the company's first president. It continued to do all transmission projects that were planned or unfinished by TransCo which are called as Projects Under Construction (PUC) on its first few years and makes or plans any new projects through the Transmission Development Plan (TDP).
On March 26, 2010, Roque Corpuz was appointed as the company's second president, replacing Walter A. Brown. Three months later on June 20 of that same year, Henry Sy, Jr. became the third NGCP president.
On May 2017, TransCo accused the company with violating the terms of its contract by supposedly making too much money from its operations of the country’s electricity grid. Executive Secretary Salvador Medialdea pointed out that, if indeed NGCP had violated the terms of its contract by profiting unduly from the operations of the power grid such as allowing telecommunications firms to mount their fiber optic cables on the transmission towers.
On March 7, 2018, Henry Sy, Jr. resigned as president and CEO, with Chief Administrative Officer Anthony Almeda named as the company's new president.
Franchise law.
Unlike outright sale, the concession agreement allowed the Philippine government to keep ownership of the transmission assets through TransCo, in accordance with Section 8 of Electric Power Industry Reform Act (EPIRA) or Republic Act 9136 which states that no person, company, or entity other than TransCo who shall own any transmission facilities. Its franchise only covers the operations, maintenance, and expansion of the power grid. It officially started operations on January 15, 2009. Assuming it secures a renewal, it has a total of 50 years and will end on December 1, 2058. Under its franchise, it has the right to operate and maintain the transmission system and related facilities, and the right of eminent domain necessary to construct, expand, maintain, and operate the transmission system.
For more details about its franchise law and EPIRA law, visit these websites.
Organization.
Below is a table listing the board of directors and officials of NGCP.
Business scope.
Below is a table listing the district numbers and what areas or provinces that each district covers.