NGCP warns of power interruptions amid summer heat

The National Grid Corporation of the Philippines (NGCP) on Monday warned of possible power interruptions this summer season as the Energy Regulatory Commission (ERC) denied its request for monthly extensions on ancillary services agreements.

The grid operator said the denial of the month to month extensions on ancillary services agreements came after it accepted and opened bids for ancillary services for Luzon on March 14, Visayas on March 15, and Mindanao on March 16.

The NGCP said it expects to formally award contracts to winning bidders by April 18, 2023, but a provisional approval from the ERC on the Ancillary Service Procurement Agreements (ASPAs) may not be expected earlier than June.

“Many of NGCP’s AS agreements have expired. We have resorted to month to month extensions of our existing agreements to ensure the sufficiency of services while the procurement process is ongoing,” NGCP said in a statement.

“With ERC’s denial of this interim agreement, our hands are tied. The Philippine Transmission Grid shall be vulnerable to power interruptions resulting from an artificial lack of AS,” it added.

The NGCP warned that fluctuations could cause damage to sensitive equipment, automatic load dropping (ALD), or unexpected power interruptions.

The possible power interruptions come amid the start of the summer season in the country, with the health department warning against heat exhaustion.

The Department of Energy (DOE) projects the Luzon Grid to be placed under yellow alert in the year’s weeks 13 and 17 in April, all weeks of May, and weeks 22 and 23 in June, indicating that the grid has thin reserves based on supply and demand.

“With this disappointing development, this leaves us with no other option. If we sign interim extensions, we expect the ERC to issue us yet another show cause order,” the NGCP said.

“If we do not, we will be unnecessarily subjecting consumers connected to the grid to avoidable and damaging fluctuations or worse, interruptions,” it added.

Sought for comment, the ERC said it will wait for the NGCP to file an appeal on the decision.

“ERC awaits NGCP’s filing of a Motion for Reconsideration, which is provided for under the Revised Rules of Practice of the Commission, so we can officially revisit our ruling,” ERC Commissioner and Spokesperson Floresinda “Rexie” Digal said in a mobile message.

The NGCP said it has already written to the DOE to intervene in the matter. —VAL, GMA Integrated News