NGCP defends PEDC acquisition

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP), the operator of country’s power transmission highway, reiterated yesterday that its planned acquisition of Panay Energy Development Corp (PEDC) is part of its mandate as the entity in charge of the country’s transmission assets.

“Basically we stand by our position that the intended purchase of facilities of PEDC is really borne out of the fact that by the ERC’s (Energy Regulatory Commission) own definition, these facilities are transmission related. They perform transmission functions and because they’re transmission in nature, NGCP believes that they should be under its control,” NGCP spokesperson Cynthia Alabanza said in a briefing.

On the looming increase in transmission rates, Alabanza said this would be offset by the possible entry of more power producers to provide electricity to PEDC, a subsidiary of Global Business Power Corp., the power unit of the Metrobank Group.

She said the generation company in the island, Panay Electric, can tap cheaper rates from other power generators.  The company currently sources all of its requirements from PEDC.

“Panay Electric will now be connected to the grid and will have access to cheaper power from other sources apart from PEDC so they actually have the benefit of bargaining with other sources,” Alabanza said.

PEDC’s transmission assets are worth roughly P620 million.

Some groups have opposed NGCP’s planned acquisition saying that the purchase of PEDC’s transmission assets is a by-product of corporate greed and not public service and that it runs counter to the true intent of the Electric Power Industry Reform Act of 2001 (EPIRA).