The National Grid Corporation of the Philippines (NGCP) on Monday, March 27, warned of power interruptions after the government denied its request for monthly extensions on ancillary services agreements.
“Ancillary services support the transmission of power from generators to consumers to maintain reliable operations. These are necessary for NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system,” the NGCP said.
If not managed properly, fluctuations can cause damage to sensitive equipment or even automatic load dropping (ALD) if the fluctuations are severe enough to pose a danger to the transmission system as a whole.”
According to the NGCP, the Energy Regulatory Commission (ERC) denied the request after the grid operator concluded the acceptance and opening of bids for ancillary services for Luzon on March 14, Visayas on March 15, and Mindanao on March 16.
The NGCP is currently evaluating the bids and expects to formally award contracts to the winning bidders no later than April 18. However, a provisional approval of Ancillary Services Procurement Agreements (ASPAs) by the ERC may not be expected earlier than June.
“If we sign interim extensions, we expect the ERC to issue us yet another show-cause order. If we do not, we will be unnecessarily subjecting consumers connected to the grid to avoidable and damaging fluctuations, or worse, interruptions,” the NGCP said.
The NGCP said many of its ancillary services agreements have expired.
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“We have resorted to month-to-month extensions of our existing agreements to ensure the sufficiency of services while the procurement process is ongoing. With ERC’s denial of this interim arrangement, our hands are tied,” it said.
The NGCP has already asked the Department of Energy to intervene in the matter.
On March 21, the state weather bureau PAGASA declared the onset of the dry season, which will last until May.
