Philippine Energy Policy Wiki

National Transmission Corporation (TransCo)

Status
operative
Confidence
high

TransCo is a government-owned and controlled corporation (GOCC) responsible for the ownership of the Philippines’ transmission assets. Following the award of a 25-year Concession Agreement in 2008, the authority for management, operation, and expansion of the transmission network was transferred to the private National Grid Corporation of the Philippines (NGCP) — a franchise holder under RA 9511.

TransCo’s retained functions are oversight, asset ownership, and specific mandated financial and operational responsibilities [PEP 2023-2050 Vol. III, Section D, pp.47–48, 2023].

Statutory Basis

TransCo was created by Section 8 of RA 9136 (EPIRA), which mandated it to assume NPC’s electrical transmission function, including authority for planning, construction, and centralised operation and maintenance of high-voltage transmission facilities, grid interconnections, and ancillary services [RA 9136, Section 8, 2001].

Within six months of EPIRA’s effectivity (26 June 2001), all NPC transmission and subtransmission facilities, related assets, and NPC’s nationwide transmission franchise transferred to TransCo. TransCo was initially wholly owned by PSALM Corp. [RA 9136, Section 8, 2001].

Mandated functions under EPIRA [RA 9136, Section 9, 2001]:

  • System operator for the nationwide transmission system
  • Open and non-discriminatory access to all electricity users
  • Grid reliability per the Grid Code
  • Preparation and submission of the Transmission Development Plan (TDP) to DOE for integration with the PDP and PEP
  • Central dispatch of all grid-connected generation per the market operator’s schedule

Privatisation mandate (Section 21): PSALM Corp. was directed to award transmission facilities through open competitive bidding as either an outright sale or a 25-year renewable concession. This was implemented in 2008 via the Concession Agreement with NGCP under RA 9511. See National Grid Corporation of the Philippines (NGCP) and Digest: RA 9136 — Electric Power Industry Reform Act of 2001 (EPIRA) .

Functions and Programs

NGCP Concession Compliance Monitoring

TransCo oversees NGCP’s compliance with the Concession Agreement and DOE policies. This includes regular asset inspections per annual schedule, technical reviews of NGCP’s ERC submissions, and participation in ERC regulatory hearings [PEP 2023-2050 Vol. III, p.47, 2023].

FIT-All Fund and GEAP Revenue Administration

TransCo manages and allocates the Feed-in-Tariff Allowance (FIT-All) Fund for eligible FIT RE developers and Green Energy Auction Program (GEAP) participants. TransCo is digitalizing FIT and GEAP revenue billing/payment processes through the Automated FIT-All Fund Management System (FFMS) to improve disbursement efficiency [PEP 2023-2050 Vol. III, p.47, 2023].

Small Grid System Operator (SGSO)

DC2021-11-0039 (November 2021) mandated TransCo as Small Grid SO in specific off-grid areas, amending DC2019-01-0001 Rule 7.1.2. TransCo assumes SO responsibility when: (a) more than one DU uses HV lines and more than one GenCo supplies; (b) one DU uses HV lines with more than one GenCo; or (c) one DU uses MV lines with more than one GenCo. Single-DU, single-GenCo MV configurations retain the DU as default SO [DC2021-11-0039, Rule 3, 2021-11]. See Small Grid System Operator (SGSO) Framework for the full framework.

The most prominent application is the Mindoro Grid, where TransCo operates as Stand-alone Small Island Grid System Operator (SIGSO). TransCo is finalizing the Mindoro Grid Protection Philosophy and Setting Guidelines. An SO exit/phase-out plan will be formulated ahead of the Mindoro Grid’s interconnection with the Luzon Grid via Mindanao-Visayas Interconnection Project (MVIP) [PEP 2023-2050 Vol. III, p.48, 2023].

Right-of-Way (ROW) Claims Settlement

TransCo retains liability for all ROW claims accrued before the 2008 concession transfer to NGCP. In 2022, TransCo initiated 199 ROW claims for settlement and expropriation cases (vs. a target of 176). A digitalized ROW claims monitoring system is being incorporated into TransCo’s broader digitalization initiative [PEP 2023-2050 Vol. III, p.48, 2023].