ERC approves working group to probe contractor ‘damage’ to NGCP Cebu

By Jed Macapagal – January 31, 2025
from Malaya Business Insight

The Energy Regulatory Commission (ERC) has approved the creation of a technical working group (TWG) tasked to investigate damage sustained by the National Grid Corporation of the Philippines’ (NGCP) transmission facility in Cebu from excavation activities in the area conducted by a contractor for another government agency.

The regulatory body mentioned the move in a notice of commission action dated January 22, 2025 but was only posted on Thursday. It was taken in response to damage to NGCP’s 138-kilovolt Cebu-Mandaue underground power line, which was damaged by excavation activities of a Department of Public Works and Highways (DPWH) contractor in 2023, it said.

“There was already an initial assessment by technical team but the TWG is necessary to make sure not just technical but legal and market-related issues are addressed as well, including formulation of rules that would apply to similar incidents,” ERC chair Monalisa Dimalanta said in a message to reporters on Thursday.

The ERC also said in the document the TWG should conduct investigation into the Cebu-Mandaue incident if the project is subject to revisions on the composition, timelines and scope of work.

NGCP said that in January 2023, the line was accidentally hit by a backhoe of a DPWH contractor during excavation activities at Umapad, Mandaue City, which forced the company to temporarily used the remaining power line in the area to supply power to parts of Visayan Electric Co. and Mactan Electric Co. at a maximum of 180 megawatts (MW).

By June 2023, NGCP has restored the second underground line of the facility after completing repairs, and enabled the company to transmit a maximum of 360 MW of power to the two distribution utilities.