THE Energy Regulatory Commission (ERC) has issued a show-cause order against the National Grid Corp. of the Philippines (NGCP) over delays in 37 transmission projects.
In an order promulgated on June 14 and issued July 4, the ERC said the NGCP failed to meet its proposed timelines to complete the projects, and directed the system operator to explain within 15 days why no administrative penalty should be imposed.
“The Commission has observed that the said timelines were not followed and NGCP’s implementation of its approved CAPEX (capital expenditures) applications have been delayed,” the ERC said.
According to the ERC order, of the 37 delayed projects, seven are completed, three are in the pre-construction stage, and 26 remain incomplete. No information is available on the completion status of one project.
On average, NGCP’s delays range between 21 days and 2,561 days, the ERC said.
NGCP was ordered to provide “detailed explanations” on the cause of the delay of each project and new timelines per project, the ERC said.
“Pursuant to this mandate, the NGCP has filed several applications for the approval of its capex applications for the purpose of expanding and improving the transmission facilities. Some of these projects have already been approved by the Commission,” the ERC said.
NGCP’s capex program requires ERC approval under Republic Act No. 9136 or the Electric Power Industry Reform Act.
NGCP holds the exclusive concession and franchise to operate the power transmission network, which links power generators and distribution utilities.
BusinessWorld asked the NGCP for comment, but it had yet to reply at the deadline.
The ERC noted that according to the Transmission Development Plans submitted by the NGCP, the transmission grid grew 8% as measured by line expansion. — Ashley Erika O. Jose