ERC wants higher fines for NGCP's delayed projects

The Energy Regulatory Commission (ERC) on Tuesday said it is pushing for the imposition of higher fines against the National Grid Corporation of the Philippines (NGCP) over the delay of at least 34 transmission projects.

That's according to ERC chairperson Monalisa Dimalanta after she was asked by lawmakers if the state regulator finds the current P15.8 million fine for NGCP sufficient.

“It is too small. We are already revising our schedule of fines and penalties, plus we are seeking the amendment of EPIRA to allow us to impose higher penalties,” Dimalanta said, referring to the Electric Power Industry Reform Act signed into law way back in 2001.

House legislative franchises panel chairperson and Parañaque Rep. Gus Tambunting urged Dimalanta to resolve the issue within her seven-year tenure.

“You have to address this during your term, Chair Monalisa, so that the penalty would have teeth. If it is just P500,000, I would just pay the fine rather than complete the project,” Tambunting said.

“Meanwhile, as stated by the DOE, the electricity rates are increasing,” Tambunting added.

Explanation

The counsel for the NGCP, Atty. Pia San Diego, meanwhile, said the NGCP will submit a detailed explanation for the delays.

“We will submit the list of projects and the completion dates as well as the reasons for the change of the moving targets,” San Diego said.

But during the same inquiry, Undersecretary Sharon Garin of the Department of Energy (DOE) said that the completion date of NGCP projects should have a fixed date to begin with.

“The targets are supposed to be fixed. The Commission (ERC) is the one that's going to fix them. That's what the Commission has to do,” Garin said.

“These [moving targets] are violations of the TDP, their concession [agreement], the EPIRA law, and the franchise,” Garin added.

Garin, however, emphasized that there are also other factors to consider in the delayed projects.

“There’s right of way, there are projects pending ERC approval also. It’s a culmination of everything,” Garin said.

Given Garin’s statements, Philreca party-list Rep. Presley de Jesus said it would be unfair to solely blame NGCP for the delays.

“NGCP should not take all the blame here,” de Jesus said.