THE National Grid Corp. of the Philippines (NGCP) has asked the Department of Energy (DoE) to withdraw two department circulars that would allow power generation companies and the National Transmission Corp. (TransCo) to finance and construct transmission projects, arguing that the measures violate its exclusive mandate as the operator of the country's power grid.

In a consolidated position paper addressed to Energy Secretary Sharon S. Garin, NGCP called for the immediate withdrawal of the circulars, which it said conflict with the Electric Power Industry Reform Act of 2001 (EPIRA) and its concession agreement with the Power Sector Assets and Liabilities Management Corp. (PSALM) and TransCo.

The exchange puts a spotlight on the country's transmission backbone — the high-voltage network that carries electricity from generating plants to distribution utilities — and on who is entitled to plan, build, and pay for its expansion.

NGCP characterized the circulars as being “in clear violation” of EPIRA and its concession agreement.

According to the company, the law and the concession agreement grant it the exclusive right and obligation to construct, finance, maintain, expand, and operate the nationwide transmission grid, as well as to prepare the annual Transmission Development Plan (TDP). EPIRA, the 2001 law that restructured the power industry into generation, transmission, distribution, and supply segments, treats transmission as a common carrier business subject to regulatory oversight.

NGCP said Section 9 of EPIRA limits generation companies to dedicated point-to-point transmission facilities connecting their power plants to the grid. Expanding the scope of projects other entities may undertake without amending the law, it argued, constitutes an overreach of executive authority.

“By altering the statutory framework and substantially modifying what is allowed under the EPIRA, the DoE has exceeded its delegated executive authority and has violated the constitutional principle of Separation of Powers,” NGCP said.

The company also raised concerns over provisions allowing TransCo to implement projects outside the TDP, saying separate planning and construction arrangements could affect the coordinated development of the interconnected transmission grid.

NGCP cited a Feb. 19, 2025 arbitral award that it said affirmed its exclusive responsibility to prepare the TDP during the concession period.

“NGCP respectfully, but strongly urges the DoE to immediately withdraw both Department Circulars and submits that any supposed gaps in transmission development should be addressed through coordination with NGCP and the ERC (Energy Regulatory Commission) within the existing statutory and concession framework,” it said.

How the DoE responds to the position paper — whether it stands by, revises, or withdraws the circulars — is the next development to watch.

NGCP is responsible for operating and maintaining the country's transmission system under a concession agreement with TransCo. It took over grid operations in 2009. — Sheldeen Joy Talavera