The Energy Regulatory Commission (ERC) has approved nine ancillary services procurement agreements (ASPA) between the National Grid Corporation of the Philippines (NGCP) and various power suppliers.

These agreements will enable NGCP to procure ancillary services essential for ensuring the reliable operation of the transmission system and securing the nation's electricity supply.

In a recently issued ruling, the ERC granted final authority to NGCP and five power firms, with one company overseeing four battery energy storage systems (BESS).

Universal Power Solutions, Inc. (UPSI), a subsidiary of San Miguel Corporation (SMC), received approval for its ASPAs with NGCP, covering its Lamao (Bataan), Concepcion, and Jasaan BESS facilities.

Masinloc Power Partners Co. Ltd., another subsidiary of SMC Power Holdings Corp. (SPHC), also secured approval to provide ancillary services to NGCP.

Giga Ace 4, Inc. (GA4) and Ingrid Power Holdings, Inc., both wholly-owned units of ACEN Corporation (an Ayala-led firm), were granted authority to proceed with their procurement agreements with NGCP.

Therma Marine, Inc. (TMI - Mobile 2), an Aboitiz-led company, also received the green light to implement its ASPA with NGCP.

Under the Electric Power Industry Reform Act (EPIRA), ancillary services are designed to support the transmission of power from generation sources to consumers while ensuring the transmission system's reliable operation.

Last month, NGCP announced an increase in transmission rates, primarily attributed to higher ancillary service (AS) charges.

In April, AS rates experienced a significant 16.05 percent surge, reaching ₱0.8094 per kilowatt-hour (kWh). This increase stemmed from the third payment installment for the remaining 70 percent of the reserve market costs during the March 2024 billing period, the implementation of which was previously deferred by the ERC.