The Energy Regulatory Commission (ERC) has penalized the National Grid Corporation of the Philippines (NGCP) for failing to comply with the commission’s directives regarding its Capital Expenditure (CAPEX) projects.
In a decision dated June 25, 2024, and promulgated on August 31, 2024, the ERC imposed a fine of PHP 3.5 million on NGCP for unjustified delays in the implementation of 10 key CAPEX projects.
These projects include Phase 2 of the Baloi-Kauswagan-Aurora 230kV Transmission Line Project , Pagbilao EHV Substation Project, Antipolo EHV Substation Project, Tuy (Calaca)‐ Dasmariñas 500kV T/L Project, Cebu-Lapu-Lapu Transmission Project, Cebu-Negros-Panay (CNP) 230kV Backbone Project Stage 3, and Tacurong-Kalamansig 69kV Line.
The 81-page decision highlighted NGCP’s critical role as the sole concessionaire operating the country’s transmission system, underscoring that any delay in these projects could significantly affect the grid’s capacity to meet the growing power demand and ensure stable electricity rates.
“It must be emphasized that this is not an issue of whether or not these CAPEX Projects have a rate impact on the consumers because any delay and unrealized CAPEX project is prejudicial to the public,” the ERC stated in its decision.
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