NGCP may buy transmission assets of Metrobank power unit

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP), the operator of the country’s power transmission grid, is planning to purchase P216.2 million worth of the Metrobank Group’s transmission assets.

In a regulatory filing with the Energy Regulatory Commission (ERC), NGCP said it seeks to acquire the transmission assets of Cebu Energy Development Corp. (CEDC), a unit of the Metrobank Group.

“NGCP respectfully moves for the issuane of a provisional approval authorizing NGCP to acquire the CEDC assets, including the lot where the switchyard is constructed, upon payment to CEDC of the amount equivalent to NGCP’s valuation of the assets,” it said.

In the same ERC filing, NGCP noted that these assets perform transmission functions and must be transferred to the transmission operator pursuant to the Electric Power Industry Reform Act (EPIRA) of 2001 and its implementing rules and regulations.

“Given that CEDC lacks the necessary expertise, resources and capability to operate and maintain these assets in accordance with the standard and procedures under the Philippine Grid Code, if these assets remain under the control of CEDC, the transmission system in Panay Island will continue to be at risk,” NGCP said.

According to NGCP, there is an urgent need for it to own, operate and maintain the CEDC’s assets.

A transmission facility, NGCP noted, must not be used by a generation company for a potential unfair market advantage over its competitors. CEDC also owns a 246-megawatt coal-fired power plant in Cebu City.

“Thus, to give equal opportunity to the generation companies, ownership of the generation facility which serves other grid users must be transferred to NGCP,” it said.

NGCP said CEDC’s sub-transmission assets play a vital role in the configuration of the Visayas grid, its reliability and security must always be ensured and the power generating firm does not have the mandate to engage in transmission operation.

Meanwhile, NGCP said it has the capability and mandate to run CEDC’s transmission assets, being the concessionaire of the National Transmission Corp.

NGCP is specifically eyeing five 138-kilovolt power circuit breakers and accessories at CEDC switchyard (P45.8 million), Calung-Calung 138k kV double circuit transmission line (P86.12 million), 40-megawatt-ampere 138-kV transformer (P29.41 million), four 138-kV power circuit breakers at Calung-Calung substation (P40.5 million) and the lot of CEDC switchyard (P14.36 milion).