Sub-tranmission asset sale deadline extended

THE Energy Regulatory Commission (ERC) has extended the deadline for the privatization of government’s remaining sub-transmission assets (STA) for one year.

In a decision, the regulator said that it extended the sale of STAS from December 31, 2011 to December 31, 2012 to give distribution utilities more time to form consortiums for the acquisition of the assets.

“The ERC considers the extension of the deadline to be in keeping with the mandates of the Electric Power Industry Reform Act of 2001 [EPIRA],” it added.

Under Republic Act 9136 or the EPIRA, the National Transmission Corp. (Transco) is mandated to sell its STAS to qualified distribution utilities and electric cooperatives.

These assets are part of the country’s power transmission system, which Transco used to operate and maintain until it was privatized to the National Grid Corp. of the Philippines in 2009. Despite this, the privatization of the power grid’s STAS was retained by Transco.

The latter sued for a six-month extension for the privatization last year since it has yet to dispose of 20 percent of its STAS.

The ERC, however, “deems it appropriate to grant the request of Transco with modification and extension and extend the deadline until December 31, 2012 to afford the [ distribution utilities] ample time to acquire the [STAS].”

STAS are power lines typically rated at 69 kilovolts and 325 megavolt ampere transformers directly connected to utilities. The assets are aimed at allowing electricity distributors to improve their operations. In total, Transco’s STA inventory is worth P8.8 billion.

The sale of the assets aims to allow electricity distributors to control their operations while freeing the grid operator’s resources on improving the reliability and efficiency of the highvoltage transmission network.