Transco told to tackle project problems in proper forum

The Energy Regulatory Commission has reminded the National Transmission Commission to "just stick to the facts, set the records straight and ventilate their concerns in the proper forum."

ERC chairman Rodolfo Albano Jr. suggested that Transco elevate its concerns in the public hearings conducted for its project applications "for a more constructive resolution."

Albano also clarified that the ERC did not issue any order to stop the construction of Transco projects, even if the commission imposed upon Transco a P9.4-million penalty for starting a project without the required ERC approval first.

"It only asked Transco to comply with the requirements set by law and to pay the penalties borne out of its violation," he said.

Albano made the reactions to the earlier statements of Transco-Visayas area vice president Jules Alcantara saying the ERC decision should not stop the implementation of the firm's projects, especially in the Visayas where power shortage has been projected to occur.

The ERC is not the cause of delay in the project implementation because it is only making sure that guidelines are properly followed, said Albano.

He said Transco has 37 capital projects that started without ERC's approval, as required by the Electric Power Industry Reform Act. One of these is the proposed Cebu-Negros Interconnection Project, which has just been awarded to two bidders.

"These projects have implications on the rates of end-consumers. The ERC is merely doing its job of ensuring that the projects will not be prejudicial to stakeholders of the power industry. The ERC is certain that this is also a concern shared by Transco," Albano said.

Albano further said the ERC makes sure that these projects will not exceed present and future needs, the bidding are done fairly and transparently, and the construction schedules are cost-effective.

On the other hand, Alcantara however clarified that, in his earlier statements, he did not mean that Transco would defy the ERC decision, a copy of which he has yet to read.

He said Transco had the approval of the National Economic Development Authority-investment coordination committee and had also submitted documents to the ERC. - Wenna A. Berondo