The National Transmission Corporation (TransCo) is a Philippine government corporation created in 2001 by the Electric Power Industry Reform Act currently operating the nation's power grid. It assumed all of Napocor

National Power Corporation

The National Power Corporation , also known as the NPC or Napocor, is a state-owned company that serves as the largest provider and generator of electricity in the Philippines...

's substation and transmission assets.

History

TransCo was previously an integral part of the state-owned National Power Corporation

National Power Corporation

The National Power Corporation , also known as the NPC or Napocor, is a state-owned company that serves as the largest provider and generator of electricity in the Philippines...

 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

Meralco

The Manila Electric Company , also known as MERALCO or Meralco, is the Philippines' largest distributor of electrical power.The word MERALCO, is an acronym for Manila Electric Railroad And Light COmpany, which was the company's original name from 1903 to 1919.MERALCO is the Metro Manila's only...

) and electric cooperatives all over the Philippines.

Privatization

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

Consortium

A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal....

 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

Auction

An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...

 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

San Miguel Corporation

Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....

(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."