NGCP contests ERC’s ‘AS’ verdict

Listed Synergy Grid & Development Phils. Inc., the holding firm of the electricity superhighway operator, said Thursday that the National Grid Corporation of the Philippines mulls challenging the order of the Energy Regulatory Commission alleging its non-compliance to government mandates.

"The company was informed that NGCP intends to file a Motion for Reconsideration within the period allowed by the rules and regulations," Synergy Grid said in a disclosure to the stock exchange on Thursday.

In a decision dated 24 October and released to media on 8 November, the ERC said NGCP must pay the government P5.1 million in penalties for violations of requirements related to contracting ancillary or support services or AS.

One of the NGCP's violations was its failure to submit to the Energy Department its Terms of Reference and Invitation to Bid for ancillary services.

'Political atmosphere'

Second, the NGCP's failure to publish and maintain the ITB on its website without prior DoE approval also counted as another violation.

In response, the NGCP said on Tuesday they "were wary and defensive, given the overtly biased and intrusive political atmosphere prevailing at the time."

"This very issue on the AS CSP submission was raised by the secretary and the appropriate submissions to the DOE were made within hours of that first meeting. As if timed to the hour, the ERC show cause was issued the very next day," NGCP said.

The ERC issued a warning that it may endorse the cancelation of NGCP's Certificate of Public Convenience and Necessity, and the revocation of its legislative franchise if it incurs more violations.

On 16 September, the ERC issued Show Cause Orders through ERC Case Nos. 129, 130, and 131 SC to the NGCP for failing to follow the policies issued by the Department of Energy in October 2021.

The DoE issued Department Circular No. DC2021-10-0031: "Prescribing the Policy for the Transparent and Efficient Procurement of Ancillary Services by the System Operator."

It required all ancillary services or reserves in the grid to undergo an open and competitive bidding process for transparency, competitiveness, and wide dissemination to qualified facilities.

NGCP holds a 25-year franchise to solely operate the power transmission assets of the government under the Republic Act 9511 signed in 2008.