NGCP fined P12.3M over delayed projects
By Ed Paolo Salting – November 27, 2024
from The Manila Times
THE Energy Regulatory Commission (ERC) said on Tuesday that it had imposed an administrative penalty of P12.3 million on National Grid Corp. of the Philippines (NGCP) over the latter’s failure to meet timelines for the implementation of 27 capital expenditure (capex) projects.
In a 105-page decision dated Jan. 16 but released only on Tuesday, Nov. 26, the commission said that the transmission firm had failed to justify significant delays in the implementation of the projects. The firm was ordered to pay the P12.3-million penalty within 15 days of receiving the decision.
The ERC said the ruling follows an earlier one issued in August when it ordered the NGCP to pay a P3.5-million penalty for delays in completing 10 other projects.
The commission said the latest penalty was deemed appropriate as the projects were central to its decision to approve NGCP’s capex applications.
“It must be emphasized that any delay and unrealized capex project is prejudicial to the public interest. The respondent NGCP, itself, had argued numerous times in its applications that these projects will help ensure the quality, reliability, security, and affordability of the supply of electric power by accommodating the increasing demand of electricity,” the ERC said.
“Therefore, the failure to timely implement these projects will have an impact on the reliability of the transmission system which it operates, and consequently, on the cost of electricity that consumers have to pay,” it added.
NGCP officials were not immediately available for comment.
The ERC also rejected the firm’s argument that the projects were not bound by the commission’s deadlines, noting that this was “contrary to public policy” and implied that NGCP had full discretion as to when to finish its projects depending on what suits its priorities.
The ERC also told the NGCP that the filing of a motion for reconsideration would not prevent the decision from becoming executory.
The 27 capex projects facing delays consist of various upgrades of substations, transmission line projects, and other related works.
These include, among others, the Opol Substation Project, Toril Substation Project (Phase 2), Hermosa-Floridablanca 69 kilovolt (kV) Line Project, Agus 2 Switchyard Upgrading Project, Panitan-Nabas 138 kV Line 2 Project, Cebu-Negros-Panay 230 kV Backbone Project (Stage 1), Western Luzon 500kV Backbone Project (Stage 1: Castillejos-Hermosa 500 kV Transmission Line Project), Tuguegarao-Lal-Lo (Magapit) 230 kV Transmission Line Project, Manila (Navotas) 230 kV Substation Project, and the Bataan-Cavite/Metro Manila Transmission Line Project (Phase 1) Feasibility Study.
