National Transmission Corporation

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National Transmission Corporation
TRANSCO
National Transmission Corporation (TransCo).svg
FvfBantayog0172 13.JPG
Corporate headquarters of TransCo
Agency overview
FormedJune 8, 2001; 20 years ago (2001-06-08)
HeadquartersPower Center, Quezon Avenue corner BIR Road, Diliman, Quezon City, Metro Manila 1101, Philippines
Agency executive
Parent departmentDepartment of Energy
Websitewww.transco.ph

The National Transmission Corporation (TransCo) is a Philippine government-owned and controlled corporation created in 2001 by the Electric Power Industry Reform Act (Republic Act 9136) and a corporate entity wholly owned by the Power Sector Assets and Liabilities Management (PSALM). It is the owner of the country's power grid that is being operated, maintained, and developed by the National Grid Corporation of the Philippines (NGCP). As owner of the transmission facilities, it assumed all of National Power Corporation's (NAPOCOR) substation and transmission assets. TransCo is also responsible for protecting the national government's interests by monitoring NGCP's compliance with the standards set by its concession agreement with NGCP, congressional franchise and other relevant laws, handle existing cases such as right-of-way (portion of a power line) and lands where the transmission structures stand acquired and designated, structures built, and other claims that were accrued prior to the turnover of operations and maintenance of the power grid to NGCP on January 15, 2009, divest remaining sub-transmission assets to technically and financially qualified electric distributors nationwide, and undertake the operations, maintenance, consultancy and other technical services for the Philippine Economic Zone Authority (PEZA) and Authority of the Freeport Area of Bataan (AFAB). It is also in charge of administering the FIT to renewable power generators.

History[]

2001–2003: Creation and turnover of operations, maintenance and ownership of the power grid from NAPOCOR to TransCo[]

President Gloria Macapagal Arroyo signed RA 9136 (Electric Power Industry Reform Act), which introduced market competition in the energy sector and mandated the creation of TransCo. TransCo was started as a unit of another government-owned corporation named National Power Corporation (NAPOCOR).[1]

In October 2002, Gloria Macapagal Arroyo proved a plan to privatize TransCo through a 25-year Operation and Management Concession Agreement.

2003–2009: TransCo as power grid operator[]

TransCo took over the operations, maintenance, and ownership of the country's power grid from NAPOCOR on March 1, 2003. Its transmission lines links various power plants, distribution utilities (such as Manila Electric Company), and electric cooperatives.

In September 2004, Power Sector Assets and Liabilities Management (PSALM) received but rejected proposals from four groups with different offers for the TransCo contract that eventually led to a decision to conduct a public bidding.

In June 2005, TransCo garnered the fifth highest score in the Corporate Governance Scorecard for GOCCs & GFIs in the field of Corporate Governance from the Institute of Corporate Directors (ICD).

On September 22, 2005, PSALM filed at the Energy Regulatory Commission (ERC) a petition for a regulatory reset of the maximum annual revenue for TransCo and other concessionaires. From 2003 to 2006, three auctions failed mostly as a result of issues regarding regulatory framework and right-of-way.

In January 2006, TransCo wrote history by bagging the Philippine Quality Award Recognition for Commitment to Quality Management.

2007–2009: Privatization, transition period for the turnover of operations and maintenance from TransCo to NGCP, and turnover to NGCP[]

On December 12, 2007, 2 consortia bid for a 25-year license to run the Philippine power grid – privatization of the management of TransCo: the consortium of Monte Oro Grid Resources Corp., comprising the State Grid Corporation of China, and Calaca High Power Corp., won in an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.59 billion), Dutch firm TPG Aurora BV and Malaysia's TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."[2][3][4]

On February 28, 2008, its concession agreement with National Grid Corporation of the Philippines (NGCP) was executed and became effective.

Congress approved bicameral resolution granting franchise to NGCP to manage and operate its transmission facilities nationwide in November 2008.

President Gloria Macapagal Arroyo signed RA 9511 into law granting franchise to NGCP in December of that same year.

On January 15, 2009, TransCo turned over the operations, maintenance, and management of the transmission system to NGCP. Ownership of the country's power grid, however, remained with the Philippine government through TransCo.[5][6][7]

2009–present: TransCo after the turnover of operations and maintenance to NGCP[]

The Department of Budget and Management approved the new structure of TransCo consequent to the privatization of its transmission business on April 20, 2009.

The new table of organization employees took a new oath of office on July 16, 2009, which results in the formation of a new TransCo.

In November 2012, ERC named TransCo as fit-allowance fund administrator and was given an added role in renewable energy sector.

On March 24, 2017, TransCo receives its ISO certification for Quality Management System from TÜV Rheinland.[8]

In May 2017, TransCo accused NGCP with violating the terms of its contract by supposedly making too much money from its operations of the country's electricity grid. Executive Secretary Salvador Medialdea pointed out that, if indeed NGCP had violated the terms of its contract by profiting unduly from the operations of the power grid such as allowing telecommunications firms to mount their fiber optic cables on the transmission towers.[9]

Chinese influence and national security implications[]

In a November 2019 session, the Senate of the Philippines was informed that Chinese part ownership of the National Grid Corporation of the Philippines – the Philippines sole power transmission line company – gave China the power to remotely switch off the Philippine electrical grid.[10] Senator Sherwin "Win" Gatchalian said that he was advised by the president of TransCo that it was possible for China to shut down the Philippine electrical grid remotely "given the technological advancement right now in the telecommunications as well as in software."[11] Gatchalian also said it would "take about 24 to 48 hours, depending on the gravity, to bring the grid back up."[11]

Senator Richard "Dick" Gordon raised security concerns about the Philippines having "given our grid – although 40% it appears – to a foreign corporation that has interests that collide with our country in the West Philippine Sea," given that China "obviously has a hegemonic ambition."[10]

Organization[]

Below is a table listing the officials of TransCo which are appointed by the President of the Philippines. The TransCo organization consists of president and CEO serving as head of the government agency, secretaries of Departments of Finance, Energy and Environment and Natural Resources, with DOF secretary serving as ex officio chairman, representatives for Luzon, Visayas and Mindanao, and Corporate Secretary and Compliance Officer.

Name Position
Melvin A. Matibag President and CEO
Carlos "Sonny" Dominguez Secretary, Department of Finance and ex officio chairman
Alfonso G. Cusi Secretary, Department of Energy
Roy A. Cimatu Secretary, Department of Environment and Natural Resources
Jose O. Ilagan Luzon Representative
Gladys N. Nalda Visayas Representative
Josephine Cassandra J. Cui Mindanao Representative
Edgardo L. Padilla Corporate Secretary and Compliance Officer

Presidents[]

  • Asisclo T. Gonzaga (2001–2003)
  • Dr. Alan T. Ortiz (2003–2006)
  • Arthur N. Aguilar (2006–2009)
  • Moslemen T. Macarambon (2009–2010)
  • Melinda T. Nuique – OIC (2010–2011)
  • Rolando T. Bacani (2011–2015)
  • Generoso M. Senal – OIC (2015–2017)
  • Melvin A. Matibag (2017–present)

See also[]

References[]

  1. ^ "NGCP wields absolute power in TransCo deal". Daily Tribune. Retrieved August 6, 2021.
  2. ^ "Manila Times, RP-China group wins $3.95-B TransCo bid". The Manila Times. Archived from the original on 2007-12-13. Retrieved 2007-12-13.
  3. ^ Reuters, Two groups vie for multi-billion dlr Manila power deal
  4. ^ "Abs-Cbn Interactive, Monte Oro consortium wins TransCo bidding". ABS-CBN News. Archived from the original on 2007-07-09. Retrieved 2007-12-12.
  5. ^ TransCo Corporate Profile
  6. ^ "CORPORATE PROFILE: History". Archived from the original on 2016-12-02. Retrieved 2016-12-06.
  7. ^ NGCP - National Grid Corporation of the Philippines Corporate Profile, previous version
  8. ^ TransCo's Milestones section.
  9. ^ Inquirer, Philippine Daily. "Biz Buzz: Round One to NGCP". business.inquirer.net. Retrieved June 23, 2019.
  10. ^ a b "China could 'turn off power' in the Philippines". 2019-11-21. Retrieved 2019-11-23.
  11. ^ a b "PHL power grid can be turned off remotely —Transco head". GMA News. Retrieved 2019-11-23.

External links[]

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