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A series of massive changes in the energy industry gave birth to NGCP.



Legislators passed the landmark R.A. 9136 in 2001, better known as the "Electric Power Industry Reform Act of 2001" or EPIRA which sought to save the ailing energy industry. The EPIRA introduced two major reforms: the restructuring of the electricity supply industry and the privatization of the government-owned National Power Corporation (NPC).



Restructuring called for the separation of the different components of the power sector: generation, transmission, distribution, and supply. Electricity rates were unbundled to allow consumers to see each individual component of the electricity service they are paying for.

Generation was privatized through the sale of generation assets. Transmission was spun off to government owned National Transmission Corporation, in preparation for its eventual privatization via concession.



Concession, unlike outright sale, allowed government, through TransCo, to retain ownership of the country's transmission assets. Only the obligation to operate, maintain, and expand the grid was given to the private investors.

The consortium of Monte Oro Grid Resources Corp., Calaca High Power Corporation, and the State Grid Corporation of China as technical partner, won the 25-year concession in 2007 to operate the country's power transmission network after an open, public, and competitive bidding process. It was the biggest government auction conducted in efforts to reform the local power sector.

NGCP officially started operations as power transmission service provider in 2009. Under a congressionally-granted 50-year franchise, NGCP has the right to operate and maintain the transmission system and related facilities, and the right of eminent domain necessary to construct, expand, maintain, and operate the transmission system.






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