DOE defends NGCP on project delays

CEBU, Philippines — The Department of Energy (DOE) has admitted that the National Grid Corporation of the Philippines (NGCP) is not solely responsible for delays in various transmission projects.

Energy Undersecretary Sharon Garin explained that several factors have contributed to these delays, including pending approvals from the Energy Regulatory Commission (ERC) and issues related to rights of way involving landowners and the Department of Environment and Natural Resources (DENR).

“Sa right of way meron pa. There are cases that have pending ERC approval also. It’s a culmination of everything, like sa Panay, there’s an issue with the owner and the DENR,” Garin said during the hearing of the Committee on Legislative Franchises.

Lawmakers welcomed Garin’s pronouncement, Partylist Rep.  Presley De Jesus of  Philippine Rural Electric Cooperatives Association Inc. (Philreca) emphasized that it is unfair to place all the blame on NGCP for the project delays.

“In short, hindi lang ito solely fault ng NGCP, just to make it clear. Ang masama rito, we’re not trying to defend NGCP. We’re trying to level the playing field. Kasi ang dating, kasalanan ng NGCP kung bakit maraming delays,” De Jesus said.

De Jesus also stressed the importance of pursuing these transmission projects in order to bring down electricity prices.

Partylist Rep. Sergio Dagooc of the Association of Philippine Electric Cooperatives (APEC) also said that the delayed regulatory approvals are causing the high electricity prices being experienced by consumers, emphasizing that it is unfair to blame NGCP for it.

Dagooc said charges collected by NGCP constitute a small portion of the electric bill, and focusing on the transmission grid operator will not address the issue of high electricity prices.

Generation and distribution costs account for 55 and 20 percent, respectively, while NGCP accounts for just 3 percent of the consumers’ electric bill.

NGCP in a statement said that for its part, it has committed to submit its explanation regarding the delayed transmission projects.

Meanwhile, Clark Agustin, NGCP Assistant Vice President for System Operations, clarified that NGCP abides by the internal procedures outlined under the Philippine Grid Code and there is no single button that can shut down the power grid.

Agustin also allayed worries about the China-made equipment used by NGCP for its operation, saying China is a technical partner allowed by government.

NGCPreiterated that it is a Filipino-led company, with 60 percent of its shares owned by Filipinos.

The consortium comprised of Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and State Grid Corporation of China won the bidding for the operation of the country’s transmission grid for a purchase price of $3.95 billion.

Monte Oro Grid Resources and Calaca owns 60 percent of the company while State Grid Corporation of China holds 40 percent, meeting the law’s requirement for foreign investors. – /FPL (FREEMAN)