ERC may take legal action to compel NGCP to cooperate in performance audit


The Energy Regulatory Commission will utilize its "regulatory power" to compel the National Grid Corporation of the Philippines to submit "pertinent documents" for the ongoing comprehensive performance audit.
During the Senate panel's deliberation of the energy sector's budget on Friday, ERC chairperson Monalisa Dimalanta said they are considering taking legal action on the matter.
When asked by Senator Risa Hontiveros about the progress of ERC's performance audit on the NGCP, Dimalanta confirmed that they have encountered delays in the performance audit, particularly in obtaining information from NGCP.
"We find ourselves in the position wherein we are constrained to explore other legal remedies to make sure that the information is provided to us. DOE is studying how we can move forward," she added.
While waiting for such information, Dimalanta said the ERC has started its work by using the data it already has involving the review of the reset of power transmission rates set by the NGCP.
She likewise confirmed the ERC already finished the review and the results are expected to be released by October.
Hontiveros criticized NGCP for disregarding the performance audit, which was clearly stated in the DoE order.
In his second State of the Nation Address, President Ferdinand Marcos Jr. urged NGCP to deliver all projects that will improve the interconnection of electricity throughout the country.
This after ERC reported that 68 grid connection projects are "much delayed" including with the vital Mindanao-Visayas and the Cebu-Negros-Panay interconnections.
"You don't say that we still need to issue a subpoena on this? Perhaps the last straw that would break the camel's back is an action from the Senate," Hontiveros said.
Dimalanta said the ERC has enough powers to make NGCP comply with the performance audit procedures.
"We can use our regulatory power to compel disclosure of information," she noted.
Gatchalian stressed that a performance audit is "really necessary" as NGCP has been lagging behind in its projects' timeline.
"Transmission projects are very delayed, and it affects all of us. We are very interested in their performance and to know if they are complying with what they should be complying with. They already collected from the consumers for these projects but many of them are delayed or haven't started yet," he added.
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