THE Energy Regulatory Commission (ERC) has ordered an independent audit of the performance as well as the technical and systems operation of grid operator National Grid Corp. of the Philippines (NGCP).
ERC Executive Director Francis Saturnino Juan said the review will be conducted by the PEM Audit Committee (PAC) through an independent third party reviewer.
He said the review will be under the supervision of the Department of Energy (DOE) and the ERC.
“We directed the review of the performance by NGCP based on our authority as regulator over NGCP and also NGCP as the system operator,” Juan told reportesr.
The external audit covers NGCP’s network operations division, power network planning division, grid security management division, network protection division, and supervisory control and data acquisition/energy management system (SCADA/EMS).
It will also scrutinize NGCP’s “procedures, processes and systems” as the operator of the country’s electricity systems from June 2013 to June 2015.
Juan said the review will be guided by the terms of reference (TOR) in accordance with the parameters approved by the ERC.
“We issue out the standards and requirements that they have to comply with. It’s part of the monitoring of NGCP of the pertinent provisions or regulations,” he added.
Based on the audit TOR, the systems operation review wiall cover NGCP’s operations for Luzon, the Visayas and Mindanao.
The audit team will also assess the compliance of NGCP-SO on the Wholesale Electricity Spot Market (WESM) Rules, Market Manuals, Philippine Grid Code and Open Access and Transmission Services (OATS) Rules.
It will also review and assess the accuracy and appropriateness of systems, data management and other procedures and working processes used by the NGCP.
At the same time, the team will review the accuracy and appropriateness of the interfaces and exchange of information among the market operator of the WESM, System Operator (SO), generator-trading participants and other service providers in relation to system operations.
The ERC said there is also a need to assess the NGCP-SO practices and work processes to ensure the necessary transparency, independence, predictability and non-discrimination as well as adherence to international best practices.
The NGCP has the crucial task of delivering safe and reliable electricity throughout the archipelago, a responsibility formerly held by the National Transmission Corporation (TransCo).
Incorporated in 2008, the private corporation won in the bidding for the franchise to operate and maintain the country’s transmission network—the biggest government auction conducted in efforts to reform the local power sector.
The 50-year franchise provides NGCP with the right to operate, maintain, expand and further develop the country’s power transmission system, which involves almost 20,000 circuit kilometers of transmission lines and more than 28,00 MVA of substation capacity.
As system operator of the Philippine power grid, NGCP balances the supply and demand of electricity to efficiently serve all of its customers—power generators, private distribution utilities, electric cooperatives, government-owned utilities, eco-zones, industries, as well as directly-connected companies.
It is responsible for putting online the right mix of power plants that generate high-voltage electricity and transmitting this to the various distribution utilities which, in turn, deliver the electricity at a lower voltage rating to households and other end-users.
NGCP also operates and maintains metering facilities and provides technical services, particularly system studies, and operation and maintenance of customer facilities.