Gatchalian seeks tougher penalties for delayed power projects

Senator Win Gatchalian on Thursday, 6 November, proposed granting the Energy Regulatory Commission (ERC) greater authority to impose heavier penalties on electricity transmission operators, distribution companies, and generation firms for delayed power projects.

During a public hearing of the Senate Committee on Energy, Gatchalian cited the case of the National Grid Corporation of the Philippines (NGCP), noting that while 34 delayed grid projects were penalized, the total fine imposed by the ERC amounted to only P15 million.

Gatchalian said the penalty was disproportionate given the scale of NGCP’s operations and profits, pointing out that the company earned around P17 billion with a P3.6 billion dividend declaration in 2024.

He stressed that delays in power projects have direct consequences for consumers, including recurring brownouts and unstable electricity supply.

“One of the things that we need to update is the penalties that the ERC can impose on transmission operators, distribution companies, and generation costs,” Gatchalian said.

“Give the power to ERC to impose penalties commensurate to the size of the projects and also the operator,” he added.