The Energy Regulatory Commission (ERC) has imposed a P3.5 million fine on the National Grid Corporation of the Philippines (NGCP) for failing to meet the schedules for implementing 10 critical transmission projects. This decision, dated June 25, 2024, was promulgated on August 31, 2024.
In its statement, the ERC cited “unjustified delays” in the completion of several capital expenditure (CAPEX) projects by the NGCP. These projects include the Baloi-Kauswagan-Aurora 230kV Transmission Line 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, and the Tacurong-Kalamansig 69kV Line, among others.
The regulator emphasized the importance of adhering to the approved project timelines, noting that any delay in CAPEX projects significantly affects the reliability of the grid and its capacity to accommodate new power supplies, ultimately impacting the public.
“This is not about whether these CAPEX projects impact consumer rates,” the ERC stated. “Any delay and unrealized CAPEX project is detrimental to the public, particularly given that NGCP is the sole concessionaire for operating the transmission system in the country. Any inexcusable delay can have wide-reaching consequences on the nation’s electric power quality, reliability, security, and affordability.”
In response, NGCP spokesperson Cynthia Alabanza confirmed receipt of the ERC’s decision on August 30, 2024. “We are studying the issuance and our legal options under applicable laws, rules, and regulations,” Alabanza stated.
The ERC clarified that any motion for reconsideration would not delay the decision’s execution unless explicitly ordered by the Commission.
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