2 weeks Ago
The Energy Regulatory Commission (ERC) imposed a P3.5 million fine on the National Grid Corporation of the Philippines (NGCP) for failing to meet the schedules in implementing 10 transmission projects. In a statement on Saturday, the ERC explained that, in a decision dated June 25, 2024 and promulgated on August 31, 2024, the NGCP was penalized “for its unjustified delays in the implementation of 10 CAPEX (capital expenditure) projects.
” The power industry regulator said the grid operator failed to meet the approved project timelines of 10 projects, including: the Baloi-Kauswagan-Aurora 230kV Transmission Line Project (Phase 2V-Kauswagan-Lala 230kV T/L Project), Pagbilao EHV Substation Project, Antipolo EHV Substation Project, Tuy(Calaca)?Dasmariñas 500kV T/L Project, Cebu-Lapu-Lapu Transmission Project, Cebu-Negros-Panay (CNP) 230kV Backbone Project Stage 3, Tacurong-Kalamansig 69kV Line. In its decision, the ERC emphasized the NGCP’s obligation to adhere to the project timelines approved by the body when it applied for CAPEX projects. The regulator said that delays in implementing any CAPEX project seriously affected the grid's reliability and the transmission system's ability to absorb new power capacities, ultimately affecting public interest.
"It must be emphasized that this is not an issue of whether or not these CAPEX projects have a rate impact on the consumers because any delay and unrealized CAPEX project is prejudicial to the public,” the ERC said in its decision. “This is especially true for NGCP’s CAPEX projects since [NGCP] serves as the sole concessionaire for the operation of the transmission system in the country. Any inexcusable delay on these projects will have a far-reaching impact on our nation's electric power quality, reliability, security, and affordability,” it said.
Sought for comment, NGCP spokesperson Cynthia Alabanza said, “We confirm receipt of the ERC's Decision dated 25 June 2024 yesterday, 30 August 2024.” “We are studying the issuance and our legal options under applicable laws, rules, and regulations,” Alabanza said. The ERC, however, said that “any motion for reconsideration of the decision will not prevent the said decision from becoming executory unless otherwise ordered by the Commission.
” — DVM, GMA Integrated News.
