The Energy Regulatory Commission (ERC) has taken action against the National Grid Corp. of the Philippines (NGCP) for the delays in the completion of 37 transmission projects. The ERC approved NGCP’s capital expenditure applications for these projects but the company failed to adhere to the proposed timelines. The Bataan-Cavite/Metro Manila transmission line project, for instance, was delayed for 2,561 days and is now set to be energized next year. The Cebu-Negros-Panay 230-kilovolt backbone project stage 2 was also delayed for over 2,000 days. NGCP is now required to explain the delays and face potential penalties for violations of the Electric Power Industry Reform Act of 2001.
NGCP has called for a revision of policies in collaboration with the ERC and the Department of Energy (DOE) to expedite the expansion of transmission lines and improve the integration of renewable energy. The company highlighted the low capex ceilings implemented by the ERC as a concern. The ERC Chair, Monalisa Dimalanta, revealed that the current regulatory reset will establish new capex allowances.
The DOE has also criticized NGCP for the project delays, stating that they contributed to power interruptions in the Luzon grid. Energy Secretary Raphael Lotilla expressed concern that these delays deter potential investors from participating in renewable energy programs. The ERC acknowledged that the transmission grid has only expanded by 8% since NGCP assumed control in 2009. The regulator emphasized the need for improved progress and planning in grid expansion.
In summary, the ERC has ordered NGCP to explain the delays in transmission projects and potentially face penalties. NGCP has called for policy revisions to accelerate expansion and integrate renewable energy. The DOE has raised concerns about the impact of delays on the grid and investment opportunities. The ERC encourages a faster rate of grid expansion and improved planning.
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