National Transmission Corporation

The National Transmission Corporation (TransCo) is a Philippine government-owned and controlled corporation created in 2001 by the Electric Power Industry Reform Act (Republic Act 9136) and a corporate entity wholly owned by the Power Sector Assets and Liabilities Management (PSALM). It is the owner of the country's power grid that is being operated, maintained, and developed by the National Grid Corporation of the Philippines (NGCP). As owner of the transmission facilities, it assumed all of National Power Corporation's (NAPOCOR) substation and transmission assets. Today, it is involved in monitoring NGCP's compliance with the standards set by the relevant laws and also in charge of administering the FIT to renewable power generators.

Headquarters of National Transmission Corporation
National Transmission Corporation
TRANSCO
Agency overview
FormedJune 8, 2001 (2001-06-08)
HeadquartersPower Center, Quezon Avenue corner BIR Road, Diliman, Quezon City, Metro Manila 1101, Philippines
Agency executive
  • Melvin A. Matibag (President and CEO)
Parent departmentDepartment of Energy
Websitewww.transco.ph

History

Creation and first years

TransCo was previously an integral part of another state-owned corporation named National Power Corporation created under the Electric Power Industry Reform Act.

TransCo was separated from Napocor since March 1, 2003. Its transmission lines links various power plants, distribution utilities (such as Manila Electric Company), and electric cooperatives.

In June 2005, TransCo garnered the fifth highest score in the Corporate Governance Scorecard for GOCCs & GFIs in the field of Corporate Governance from the Institute of Corporate Directors (ICD).

In January 2006, TransCo wrote history by bagging the Philippine Quality Award Recognition for Commitment to Quality Management.

Privatization and turnover of operations to NGCP

On December 12, 2007, 2 consortia bid for a 25-year license to run the Philippine power grid – privatization of the management of the National Transmission Corporation (TransCo): the consortium of Monte Oro Grid Resources Corp., comprising the State Grid Corporation of China, and Calaca High Power Corp., won in an auction conducted by the Power Sector Assets and Liabilities Management (PSALM) Corp. as it submitted the highest offer of $3.95 billion, for the right to operate TransCo for 25 years, outbidding San Miguel Energy, a unit of San Miguel Corporation (bid of $3.59 billion), Dutch firm TPG Aurora BV and Malaysia's TNB Prai Sdn Bhd. Jose Ibazeta, PSALM president and CEO remarked: “We are very happy about the successful turnout of the bidding for TransCo. PSALM handled the privatization of the government’s transmission business with utmost transparency and judiciousness."[1][2][3]

Congress approved bicameral resolution granting franchise to National Grid Corporation of the Philippines (NGCP) to manage and operate its transmission facilities nationwide in November 2008.

President Gloria Macapagal-Arroyo signed RA 9511 into law granting franchise to NGCP in December of that same year.

On January 15, 2009, TransCo turned over the operations, maintenance, and management of the transmission system to NGCP. Ownership of the country's power grid, however, remained with the Philippine government through TransCo.[4][5][6]

The new TransCo

The new table of organization employees took a new oath of office on July 16, 2009, which results in the formation of a new TransCo.

In November 2012, ERC named TransCo as fit-allowance fund administrator and was given an added role in renewable energy sector.

On March 24, 2017, TransCo receives its ISO certification for Quality Management System from TÜV Rheinland.[7]

Chinese influence and national security implications

In a November 2019 session, the Senate of the Philippines was informed that Chinese part ownership of the National Grid Corporation of the Philippines – the Philippines sole power transmission line company – gave China the power to remotely switch off the Philippine electrical grid.[8] Senator Sherwin "Win" Gatchalian said that he was advised by the president of TransCo that it was possible for China to shut down the Philippine electrical grid remotely "given the technological advancement right now in the telecommunications as well as in software."[9] Gatchalian also said it would "take about 24 to 48 hours, depending on the gravity, to bring the grid back up."[9]

Senator Richard "Dick" Gordon raised security concerns about the Philippines having "given our grid – although 40% it appears – to a foreign corporation that has interests that collide with our country in the West Philippine Sea," given that China "obviously has a hegemonic ambition."[8]

Organization

Below is a table listing the officials of TransCo which are appointed by the President of the Philippines.

Name Position
Melvin A. Matibag President and CEO
Carlos "Sonny" Dominguez Secretary, Department of Finance and ex officio chairman
Alfonso G. Cusi Secretary, Department of Energy
Roy A. Cimatu Secretary, Department of Environment and Natural Resources
Gladys N. Nalda Visayas Representative
Josephine Cassandra J. Cui Mindanao Representative
Edgardo L. Padilla Corporate Secretary and Compliance Officer

Presidents
  • Asisclo T. Gonzaga (2001–2003)
  • Dr. Alan T. Ortiz (2003–2006)
  • Arthur N. Aguilar (2006–2009)
  • Moslemen T. Macarambon (2009–2010)
  • Melinda T. Nuique – OIC (2010–2011)
  • Rolando T. Bacani (2011–2015)
  • Generoso M. Senal – OIC (2015–2017)
  • Melvin A. Matibag (2017–present)

See also

References
  1. "Manila Times, RP-China group wins $3.95-B TransCo bid". The Manila Times. Archived from the original on 2007-12-13. Retrieved 2007-12-13.
  2. Reuters, Two groups vie for multi-billion dlr Manila power deal
  3. "Abs-Cbn Interactive, Monte Oro consortium wins TransCo bidding". ABS-CBN News. Archived from the original on 2007-07-09. Retrieved 2007-12-12.
  4. TransCo Corporate Profile
  5. "CORPORATE PROFILE: History". Archived from the original on 2016-12-02. Retrieved 2016-12-06.
  6. NGCP - National Grid Corporation of the Philippines Corporate Profile, previous version
  7. TransCo's Milestones section.
  8. "China could 'turn off power' in the Philippines". 2019-11-21. Retrieved 2019-11-23.
  9. "PHL power grid can be turned off remotely —Transco head". GMA News. Retrieved 2019-11-23.
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