TransCo to diversify into telecom, power generation
Wants new charter
State-run National Transmission Corporation (TransCo) is working its way into expanding its business grip by diversifying into telecommunications and power generation ventures.
TransCo President Melvin A. Matibag told reporters that he will pursue these business interests for the stateowned firm by seeking a new Charter for TransCo that shall be detached from the Electric Power Industry Reform Act (EPIRA) – and subsequently, it shall rename the company into National Transmission and Telecommunications Corporation.
“It will be an amendment under EPIRA on TransCo’s functions. What I plan to propose is to have it carved out from EPIRA, then Congress will have to come up with a separate Charter for TransCo – and it can become the National Transmission and Telecommunications Corporation,” he explained.
For the telecommunications segment, the company’s target will be to engage in ‘broadband venture,’ purportedly to help enhance the country’s internet connectivity and lessen the ‘digital divide’ for Filipinos especially in the remote areas.
“The mere fact that big telco companies like Globe and Smart are colocating in our transmission facilities, it seems the idea will fly and I want to make sure that it will really fly because the country needs it – it will address a lot of things: To address problems of the Internet and with telecommunications, the earnings of DUs (distribution utilities) to lower the cost of electricity and at the same time, the government will generate income,” he said.
Matibag added that with the proposed TransCo Charter, “even if I will not choose the ones embedded in the transmission lines, I can still put up a new one, using our facilities.”
In power generation, he said that TransCo intends to address the power reserves or the ancillary services (AS) needs of the power system – and he is eyeing an investment starting point of 2,000 megawatts utilizing either liquefied natural gas (LNG) or ultra super critical coal technologies.
“Under the law, we should have 20-25% reserves out of the installed capacity level, so maybe 2,000MW will make sense,” he propounded.
The TransCo chief further qualified that “it should have been 4,000MW, but that’s a little big already, so probably that should be our cap – we can start with 2,000MW or even 1,000MW going up to 2,000MW for us to address the ancillary services needs of the power industry.”
He added “I can look at LNG plant or if it’s coal, I will look at ultra super critical, so that I will have flexibility because I would also be addressing a baseload capacity need.”
Matibag also emphasized that “if you will look at the EPIRA Law, it says that the transmission sector will need to source for ancillary services, and it did not say that TransCo is prohibited from engaging in it.”