Type State-owned Website www.transco.ph | Industry Electric utility Founded 8 June 2001 | |
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Headquarters Power Center, Quezon Avenue corner BIR Road, Diliman, Quezon City, Metro Manila, 1101 Philippines Key people Carlos "Sonny" Dominguez, Chairman, Secretary, Department of Finance
June 30, 2016- Present | ||
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/RA 9136) and a corporate entity wholly owned by the Makati-based Power Sector Assets and Liabilities Management (PSALM). It is the owner of the National Transmission System that is being operated, maintained, and constructed (for transmission projects since 2009) by the National Grid Corporation of the Philippines (NGCP). As owner of the nation's transmission facilities, it assumed all of National Power Corporation's 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. At their freeport/economic zone branches, it owns and operates all distribution facilities and provider of power on all economic and freeport zones and its nearby barangays within its vicinity in the Philippines.
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Creation and first years
TransCo was previously an integral part of the state-owned National Power Corporation created under the Electric Power Industry Reform Act which describes TransCo as its "crown jewel", as a step to privatize the nation's electric industry.
TransCo has been separated from Napocor since March 1, 2003. Its transmission lines links various power plants, distribution utilities (such as Meralco), another TransCo/NGCP substation, and electric cooperatives all over the Philippines.
On June 2005, TransCo received recognition field of Corporate Governance from the Institute of Directors.
On January 2006, TransCo wrote a history by bagging the Philippine Quality Award Recognition for Commitment to Quality Management.
Privatization and turnover of operations to NGCP
The Arroyo administration has been recently criticized for conducting nontransparent and biased bidding of the nations critical power grid operator by manipulating the bidding process. Petitions were filed to the supreme court by some bidders who were barred from bidding despite being qualified enough.
Opponents to TransCo's privatizations argue that TransCo should remain state-owned instead of selling it to private firms where it can be readily abused for profits. Ultimately, electricity consumers shall burden the electricity prize hike imposed by private power transmission firm monopoly.
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., led by businessman Enrique Razon, 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 $3.905 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."
Congress approved bicameral resolution granting franchise to National Grid Corporation of the Philippines (NGCP) to manage and operate its transmission facilities nationwide on November 2008.
President Gloria Macapagal-Arroyo signed RA 9511 into law granting franchise to NGCP on 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 all transmission facilities or assets will continue to be owned by Philippine government through TransCo.
The new TransCo
The new table of organization employees took a new oath of office in July 16, 2009, which results in the formation of a new TransCo.
On November 2012, ERC names TransCo as fit-allowance fund administrator and was given an added role in renewable energy sector.
Board of Directors
TransCo is headed by a board of directors composed of 7 members. Like any some other national government-owned and controlled corporations, companies, agencies, departments, and institutions in the Philippines, all board members are appointed by the President of the Philippines and serve a term of 6 years. No member of the Board or any of his relatives within the fourth civil degree of consanguinity or affinity shall have any interest, either as investor, officer or director, in any generation company or distribution utility or other entity engaged in transmitting, generating and supplying electricity specified by ERC. Below is a table listing the board of directors of TransCo.