The Energy Regulatory Commission issued a provisional authority to National Grid Corp. of the Philippines and its power generators capable of providing ancillary services to maintain the integrity and reliability of the grid.
ERC said it provisionally approved NGCP’s ancillary service procurement agreement with Therma Marine Inc., First Gen Hydro Power Corp., Panasia Energy Inc. and SN Aboitiz Power-Benguet Inc.
The regulator said it was mandated to protect the interest of the electricity consumers as they were affected by the rates by ensuring that the tariffs imposed were consistent with the principle of full recovery of prudent and reasonable costs.
ERC said in separate decisions the applications of NGCP and the ancillary service providers would redound to the benefit of consumers in the power grid while maintaining power quality, reliability and security of the energy from resources to loads as mandated by the Electric Power Industry Reform Act of 2001.
Ancillary services refer to services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system.