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Rate deadlock risks blackouts
January 10, 2026
|Manila Bulletin
The National Grid Corporation (NGCP) is waiting for final regulatory approval on two ancillary service agreements that are still delayed, despite initial approvals, due to ongoing disputes between the grid operator and power producers over contract rates.
Data released by the NGCP showed that while the Energy Regulatory Commission (ERC) approved 36 Ancillary Service Procurement Agreements (ASPA) through the competitive selection process in 2025, two specific contracts have not yet entered the implementation phase.
These holdouts involve disputes over payment scales and formal requests by the power providers to terminate their commitments.
Under the Electric Power Industry Reform Act, ancillary services are essential support mechanisms that stabilize the transmission system, ensuring that electricity flows reliably from power plants to end users. Without these services, the grid faces increased vulnerability to fluctuations in frequency and voltage.
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