Transmission Sector

Electricity generated from power plants is generally transported via a high-voltage transmission system to the various distribution utilities or electric cooperatives. Transmission is critical in ensuring that generated electricity is delivered to distribution utilities' load centers within proper technical standards. It is a regulated common electricity carrier business subject to the ratemaking powers of the ERC.

Pursuant to the EPIRA, NPC transferred its transmission and sub-transmission assets to TransCo, which was created to operate the transmission systems throughout the Philippines. TransCo is also mandated to provide open access to all industry participants. The EPIRA granted TransCo a monopoly over the high-voltage transmission network and subjected it to performance-based regulations.

The EPIRA also required the privatization of TransCo through an outright sale or concession contract to be carried out by PSALM. In December 2007, the consortium of the Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corp. of China emerged as the highest bidder for the 25-year concession of TransCo.

The PSALM formally turned over the concession on January 14, 2009 to the National Grid Corporation of the Philippines (NGCP), the winning bidders' franchise holder. Thus, the NGCP officially has the authority to operate the country’s sole transmission system starting January 15, 2009.