The National Grid Corporation of the Philippines (NGCP) said it will actively evaluate new regulatory guidelines that strip away its exclusive control over building the country’s power lines, aiming to protect the legal and operational framework of the national transmission network.

The privately held grid operator stated on Friday, June 19, that it is analyzing the policy shift issued by the Energy Regulatory Commission.

The new rules effectively dismantle a long-standing infrastructure monopoly by allowing private generation companies and the state-owned National Transmission Corp. (TransCo) to share infrastructure construction and financing responsibilities.

The policy shift is designed to eliminate persistent grid connection bottlenecks that have stalled the delivery of new power plants, particularly renewable energy projects, to consumers.

Under the new framework, power generation companies are permitted to independently finance and develop associated transmission infrastructure, including point-to-point transmission lines and switchyards, to link their facilities directly to the national grid.

“We are presently evaluating the newly issued rules in light of our rights, obligations, and responsibilities under the Concession Agreement, Republic Act No. 9511, and other applicable laws,” NGCP said in a statement.

The operator added that it will take appropriate steps to ensure the integrity of the national transmission framework is preserved, while acknowledging the need for timely infrastructure development to achieve domestic energy security.

While TransCo is permitted to spearhead priority grid projects, the regulatory commission will maintain strict oversight on project expenditures. The regulator intends to utilize rigorous cost reviews to ensure that independent construction expenses do not translate into higher electricity rates for retail consumers. Ultimately, these newly built third-party facilities will be turned over to the designated transmission network provider.

ERC Chairperson Francis Saturnino Juan said the policy offers a clear regulatory pathway to swiftly implement critical transmission developments that have historically faced delays.

For consumers, the framework is expected to bring more power supply into the grid, reduce transmission congestion, support the integration of cleaner energy sources, and contribute to a more reliable and affordable electricity system.

Juan assured the public that the regulator will continue to conduct prudency reviews, allowing only just and reasonable costs to be recovered and passed on to consumers.