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Manila Bulletin devider Business devider Trade & Industry devider ERC releases new draft guidelines for ancillary services

ERC releases new draft guidelines for ancillary services

Published Sep 1, 2025 03:25 pm
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Governed by transparency and tasked with promoting competition and protecting consumer interests, the Energy Regulatory Commission (ERC) has released new draft guidelines for the Ancillary Services Procurement Agreements (ASPAs) entered into by the National Grid Corporation of the Philippines (NGCP).
According to an ERC document, the commission must act on all ASPA applications within 270 calendar days, or approximately nine months. If it fails to do so within this period, the application will be considered approved by default.
The ERC must also decide on any request to terminate an ASPA within 30 days of the request being filed.
ASPAs, which are filed when the system operator procures ancillary services to ensure grid reliability, are meant for a five-year term. The cost of these services is considered a pass-through charge, meaning it is recovered from consumers as part of the transmission rate.
This draft release follows the ERC’s recent pronouncements that the guidelines for the Competitive Selection Process (CSP) must be reviewed to expedite approvals and reduce backlogs. The draft will undergo a public consultation for comments and clarifications before it is pursued.
Previously, ERC Chairperson Francis Saturnino Juan emphasized the need to fast-track CSP approvals while also requiring provisional approval for Emergency Power Supply Agreements (ESPAs).
Other recent actions by the ERC include granting approval for the Manila Electric Company (Meralco) to procure its power supply from First Gas Power Corp.’s (GPC) 1,000-megawatt (MW) Sta. Rita natural gas plant. This approval extends the power supply deal between Meralco and the Lopez-led generation company until Jan. 31, 2026, months ahead of its original contract expiration of Aug. 17, 2025.

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