ERC mulling sanctions against NGC, power plants

Monalisa Dimalanta, chairperson of the Energy Regulatory Commission at the Staurday News Forum on 6 January 2023.  Framegrab from  Saturday News Forum | Facebook.
Monalisa Dimalanta, chairperson of the Energy Regulatory Commission at the Staurday News Forum on 6 January 2023. Framegrab from Saturday News Forum | Facebook.

The Energy Regulatory Commission on Saturday said it is considering sanctions against not only the National Grid Corporation of the Philippines but any power plants that have contributed to the latest electricity shortfall in Western Visayas.

During the Saturday News Forum in Quezon City, ERC chairperson Monalisa Dimalanta emphasized that the commission is conducting a thorough investigation to determine the cause of the blackout and identify those accountable.

While she refrained from prejudging the investigation's outcome, she clarified that no entity, including power plants, will be exempt from potential sanctions if found to have fallen short of required standards.

"We can't simply excuse, for example, the power plants," Dimalanta said.

"Among those six (power plants cited in initial reports), are there any that did not maintain standards? For example, did any of them disconnect earlier than what's required under the Grid Code? If that's the case, there are penalties, not just for NGCP, if we indeed find that they didn't do their job," Dimalanta added.

Dimalanta also noted that the NGCP is facing backlash because it is acting as the "main actor" in operating, maintaining, and developing the country's state-owned power grid.

She said the ERC is expected to gather more information about the region-wide blackout by next week, adding that the investigation may be completed in six to eight weeks.

After the investigation is finished, potential fines and penalties, up to a maximum of P50 million per violation, would be imposed.

Electricity in Western Visayas back

Dimalanta also mentioned that the power supply in Panay, Western Visayas, has returned to normal after a blackout plunged the region into darkness earlier this month.

She said the last affected power plant resumed operations and synchronized with the grid last Friday, gradually restoring electricity.

"The (electricity) situation in Western Visayas normalized between noon and 2 p.m., prompting the NGCP and the system operator to lift all constraints. The Wholesale Electricity Spot Market commercial operation also resumed during that time," Dimalanta said.

Even though power has returned to the area, the ERC said that ongoing monitoring is still a top priority in light of the recent, protracted power disruptions.

NGCP says it followed protocols

Meanwhile, NGCP denied any involvement in the Panay Island blackout, claiming that it had adhered to its procedures in response to criticism from influential government figures and agencies.

In a television interview on Saturday, NGCP spokesperson Cynthia Alabanza said the country's power grid operator had fulfilled its responsibility to transport power in Western Visayas.

"Based on the data we gathered, the transmission of the grid system did not fluctuate because the voltage and frequency remained normal, especially during the time when the power plant went offline," Alabanza said.

Iloilo governor Jerry Treñas and the Department of Energy held NGCP accountable for their purported inaction on the latest power outage in Western Visayas.

The Senate Committee on Energy's chairperson, Sen. Raffy Tulfo, noted on Friday that system disruptions occurred in April at both the Panay and Negros Sub-grids.

In a separate statement, Tulfo said NGCP's purported inability to maintain the country's electrical grid calls for an examination and the termination of its franchise.

"It's time to expedite the review and immediate revocation of NGCP's franchise. The public has endured over a decade and a half of sacrifices due to their failures. Enough is enough," Tulfo said.

Last Friday, President Ferdinand Marcos Jr. wanted to complete the rate reset review for NGCP and reiterated the call to reduce load.

However, Alabanza said that there was no need for load dropping.

"Since we didn't see any problems with the voltage… truth be told, I even thought that if, for example, we made a guess – speculated and removed load without reason, many would complain," Alabanza said.

If the NGCP had taken action during a two-hour window to avert a system breakdown, Marcos and DOE Secretary Raphael Lotilla said that the power outage might have been avoided.

The NGCP defended itself by maintaining that the system was functioning normally before the power plant units tripping repeatedly and that its actions followed the correct procedures.

"As the transmission service provider, NGCP can only give an overview of the current supply and demand situation and endeavor to dispatch any available power. It cannot intervene on matters concerning power generation," it said in a statement.

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