THE Energy Regulatory Commission (ERC) has imposed a fine of P3.5 million on the National Grid Corp. of the Philippines (NGCP) over its failure to meet the timelines set for 10 transmission projects.
The regulator cited “unjustified delays in implementing CAPEX (capital expenditure) projects,” according to a statement issued on Saturday, detailing a decision made on June 25 and promulgated on Aug. 31.
The ERC said that the NGCP failed to meet the approved project timelines of the Baloi-Kauswagan-Aurora 230-kilovolt (kV) Transmission Line Project (Phase 2) – (Kauswagan-Lala 230-kV T/L Project), the Pagbilao EHV (extra high voltage) Substation Project, the Antipolo EHV Substation Project, the Tuy (Calaca) – Dasmariñas 500-kV T/L Project, the Cebu-Lapu-Lapu Transmission Project, the Cebu-Negros-Panay 230-kV Backbone Project Stage 3, and the Tacurong-Kalamansig 69-kV Line.
The ERC said that a separate decision covering 27 more CAPEX projects covered by the investigation will be issued separately.
In its decision, the ERC cited the grid operator’s obligation to adhere to the project timelines approved by the ERC when it applied for the CAPEX projects.
“It must be emphasized that this is not an issue of whether or not these CAPEX projects have a rate impact to the consumers because any delay and unrealized CAPEX project is prejudicial to the public,” the regulator said.
“This is especially true for NGCP’s CAPEX projects since (NGCP) serves as the sole concessionaire for the operation of the transmission system. Any inexcusable delay on these projects will have a far-reaching impact on our nation’s electric power quality, reliability, security and affordability,” it added.
The ERC said that the delays to the CAPEX projects could affect the grid’s ability to absorb new capacity, “ultimately affecting public interest.”
Asked to comment, NGCP Spokesperson Cynthia P. Alabanza said: “We confirm receipt of the ERC’s Decision dated June 25, 2024 yesterday, Aug. 30, 2024.”
“We are studying the issuance and our legal options under applicable laws, rules and regulations,” she said via Viber.
The ERC said that “any motion for reconsideration of the decision will not prevent the said decision from becoming executory, unless otherwise ordered by the commission.” — Sheldeen Joy Talavera