ERC orders NGCP to explain delays in completion of 37 projects

The Energy Regulatory Commission (ERC) has issued a show cause order against the National Grid Corporation of the Philippines (NGCP) asking it to explain the delay in the completion of more than 30 power transmission projects.

In an order dated June 14, 2023, the ERC ordered the NGCP to submit a “verified explanation” within 15 days from receipt of the order “why no administrative penalty should be imposed upon it.”

The regulator said it has observed that the timelines for the NGCP’s approved capital expenditure (capex) projects were not followed and the grid operator’s implementation of its projects “have been delayed.”

The ERC listed 37 projects with a number of days delayed ranging from 21 to as high as 2,561 days.

Among those projects with high number of days delayed is the Tuy (Calaca)-Dasmariñas 500-kilovolt Transmission Line Project with a target completion of July 11, 2016, but as of date is only 82.48% complete and the date of energization expected by December 31, 2024. ERC said the project is 2,528 days delayed.

Likewise, the Bataan-Cavite/Metro Manila Transmission Line Project (Phase 1) Feasibility Study is 2,561 days delayed, it added.

Sought for comment, NGCP spokesperson Cynthia Alabanza said the grid operator “shall file the appropriate response to the ERC's order.”

“There are many causes for delays in project implementation that are beyond NGCP's control, including procurement of rights of way and protracted permitting procedures, among others. Late issuance of regulatory approvals may also be a reason for implementation schedules outside of those proposed in the TDP (Transmission Development Plan),” Alabanza said.

“NGCP continues to pursue all its projects and looks forward to the government's continued support as it does so,” she added.

The NGCP official said that while TDP provides a road map of transmission projects, the company prioritizes operationally critical projects that have a real impact on power system dynamics.

“The goal of NGCP, as a transmission service operator, is to provide stable bulk power delivery services with minimal impact to the consumer. The measure for the transmission grid operator’s ability to manage the power system is the ERC’s transmission performance indicators, implementation schedules notwithstanding,” Alabanza said.

The ERC said the verified explanation to be submitted by the NGCP “shall include detailed explanations on the cause of delay per project, as well as the actual timeline of implementation per project.”

The grid operator earlier blamed securing the right-of-way, permitting, and the COVID-19 pandemic for the delays in the implementation of its projects. —KBK, GMA Integrated News