The National Transmission Corporation (TransCo) stated that the National Grid Corporation of the Philippines (NGCP) has completed only 29% of its targeted projects—or 75 out of 258 planned initiatives—delays that have contributed to rising electricity costs and inefficiencies impacting millions of Filipino consumers.
In a report by the Philippine News Agency, TransCo Vice President Dinna Dizon said such hold up along with regulatory practices bring higher transmission rates and reduced grid reliability.
She also noted that NGCP achieved a fraction of its planned projects while utilizing just 10 percent of its allocated capital expenditures (CAPEX).
Dizon noted that many projects were finished only in 2023–2024, beyond the fourth regulatory period. She added that 58 ongoing projects, representing 75% of all planned projects, are also delayed, with some facing delays of over nine years.
The Energy Regulatory Commission (ERC) has fined NGCP Php15.8 million for unjustified delays, Dizon said. She also criticized the “as spent” approach used to calculate NGCP’s maximum annual revenue (MAR), which allows the company to recover expenses regardless of project completion.
Furthermore, she warned that delays in NGCP’s projects have broader implications, including missed opportunities to integrate renewable energy into the grid. This forces reliance on more expensive alternative power sources, ultimately burdening consumers and the economy.
To this, the TransCo vice president urged more accurate rate-setting practices to ensure that only completed and efficient projects are included in the Regulatory Asset Base (RAB).
Meanwhile, former TransCo president Melvin Matibag raised alarms over potential national security threats linked to NGCP operations. He cited the company’s use of the SCADA (Supervisory Control and Data Acquisition) system, supplied by NARI Group Corporation, a Chinese IT provider.
Matibag revealed that the SCADA system had been accessed remotely twice during incidents affecting the power grid. He expressed concern over the Philippine government’s limited oversight of NGCP’s facilities and operations.
In response, NGCP Assistant Vice President for System Operations Clark Agustin assured the public that no single switch could shut down the grid, addressing fears over NARI’s involvement.
TransCo’s warnings highlight the urgent need for reforms in transmission project implementation, rate-setting practices, and national security oversight. Consumers, policymakers, and industry stakeholders must work together to demand transparency and efficiency to protect both the economy and public welfare.
There are no comments
Add yours