Terms of reference set on NGCP’s technical operations review

by Myrna Velasco, February 2, 2015
from Manila Bulletin

The terms of reference (TOR) on the propounded third party review of the technical operations of the National Grid Corporation of the Philippines (NGCP) has been laid down in accordance with the parameters approved by the Energy Regulatory Commission.

The scope of work for the external audit team shall cover those on the transmission firm’s network operations division; power network planning division; grid security management division; network protection division; and SCADA/EMS (or supervisory control and data acquisition/energy management system).

“The SO (systems operation) review shall cover NGCP’s operations for Luzon, Visayas and Mindanao,” the audit TOR has stipulated.

It was further emphasized that the same shall also scrutinize NGCP’s “procedures, processes and systems” as the operator of the country’s electricity systems.

Relative to the planned audit work, the team shall also “review and assess the compliance by the NGCP-SO of the WESM Rules, Market Manuals, Philippine Grid Code and Open Access and Transmission Services (OATS) Rules.”

Moreover, audit work proffered “review and assessment of the accuracy and appropriateness of the interfaces and exchange of information among the MO (market operator of the Wholesale Electricity Spot Market); System Operator; generator-trading participants and other service providers in relation to system operations.”

There had also been stipulation to “review and assess the accuracy and appropriateness of systems, data management and other procedures and working processes used by the NGCP.”

In particular, it was recommended that the audit work will delve on “identifying the appropriate steps and measures to help the NGCP-SO effectively and efficiently to perform its responsibilities in time and form in accordance with the WESM Rules.”

There is also a need to “assess if the NGCP-SO practices and work processes to ensure the necessary transparency, independence, predictability and non-discrimination” as well as on its adherence to international best practices.

It was further set out that recommendations must be crafted “to improve the procedures to collect and process the information and controls of quality and security of data for the WESM.”

NGCP is the private firm concessionaire for the country’s electricity transmission assets and also takes the function of system operations for the varying power grids.

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