State-run National Transmission Corp. (Transco) has sold to date about P5.3 billion worth of subtransmission assets to qualified power distribution utilities since it began its privatization program in 2004, according to the Energy Regulatory Commission.
This amount approximates the value of about 80 percent of the total substransmission assets that were already divested by Transco, as mandated under the Electric Power Industry Reform Act (Epira). The remaining 20 percent has yet to be disposed, noted ERC executive director Francis Saturnino Juan.
According to Juan, the ERC has already issued a resolution extending the deadline for the sale and transfer of the remaining subtransmission assets until December 31 this year.
“Transco and some distribution utilities requested for the extension considering that Transco has yet to dispose approximately 20 percent of its residual subtransmission assets due to the fact that various distribution utilities are still negotiating for the formation of a consortium,” Juan explained.
“ERC granted the request to give [them] ample time to acquire the residual subtransmission assets,” he added.
Under the Epira, subtransmission assets will be operated and maintained by Transco until their disposal to qualified distribution utilities. These utilities will take over the responsibility of operating, maintaining, upgrading and expanding the grid assets.
In cases where more than one distribution utility is connected to a transmission line, there is a need for the connected and qualified utilities to form a consortium to buy and operate the asset.
Transco’s subtransmission assets are made up of about 6,200 circuit-kilometers, comprising 69 kilovolt transmission lines and 1,600 megavolt amperes of substation capacity.
“The transfer of ownership and control of the subtransmission assets will enable distribution utilities to expand their operations, become more efficient, serve more customers and improve service,” Transco had said.