Daily Tribune‘It must be emphasized that this is not an issue of whether or not these CAPEX Projects have a rate impact on the consumers because any delay and unrealized CAPEX project is prejudicial to the public.’
Due to the unjustified delays in the implementation of its 10 Capital Expenditure Projects, the independent regulatory agency, the Energy Regulatory Commission (ERC) on Saturday penalized the National Grid Corporation of the Philippines.
In its promulgation dated 25 June, promulgated 31 August, the ERC said the country’s transmission grid operator is liable for violating its directives for the delay in the implementation of 10 CAPEX projects, such as the Baloi-Kauswagan- Aurora 230kV Transmission Line Project (Phase 2) — (Kauswagan‐Lala 230kV T/L Project), Pagbilao EHV Substation Project, Antipolo EHV Substation Project, Tuy (Calaca)‐ Dasmariñas 500kV T/L Project, Cebu-Lapu-Lapu Transmission Project, Cebu-Negros-Panay (CNP) 230kV Backbone Project Stage 3, and Tacurong-Kalamansig 69kV Line.
Further, the ERC said there is a separate decision, to be issued separately, covering the remaining 27 CAPEX projects included in their investigation.
In its 81-page ruling, the ERC underscored NGCP’s obligation to adhere to the project timelines approved by the Commission in NGCP’s CAPEX applications.
According to the ERC, delays in the implementation of any CAPEx projects have serious implications on the reliability of the grid and on the ability of the transmission system to absorb new power capacities, ultimately affecting the interest of the public.
“It must be emphasized that this is not an issue of whether or not these CAPEX Projects have a rate impact on the consumers because any delay and unrealized CAPEX project is prejudicial to the public. This is especially true for NGCP’s CAPEX projects since [NGCP] serves as the sole concessionaire for the operation of the transmission system in the country,” the decision said.
“Any inexcusable delay on these projects will have a far-reaching impact on our nation’s electric power quality, reliability, security and affordability. The delayed implementation of its CAPEX projects will impact the ability of the grid to absorb new power capacities that will address the growing power demand of communities, businesses, and other sectors of society. All these have implications on the rates of electricity and the economy at large,” the decision further stressed.
With this, the ERC imposed a fine of P3.5 million against the NGCP for its failure to meet the timelines set for the implementation of the 10 CAPEX projects.
Moreover, the ERC likewise reminded the system operator that any motion for reconsideration of the Decision will not prevent the said ruling from becoming executory unless otherwise ordered by the Commission.
