ERC Fines NGCP With P5.1-Million, Termination Of Franchise Possible; NGCP Disappointed

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The Energy Regulatory Commission (ERC) ERC fined the National Grid Corporation of the Philippines (NGC) P5.1 million for violating DOE’s circular on transparency.

The regulatory body also threatened to move for the termination of NGCP’s congressional franchise if it will continue violating the rules on procuring power reserves.

“The ERC finds that when NGCP proceeded to publish and post the ITB without the prior approval of the DOE, it committed a violation of the said provision of the AS-CSP Policy,” the regulatory body in The Manila Standard report said

On October 24, the ERC said NGCP failed to submit to the Department of Energy (DOE) its TOR and ITB.

In a statement posted on its website on Tuesday, November 8, the ERC said the NGCP violated DOE’s Department Circular No. DC2021-10-0031, entitled “Prescribing the Policy for the Transparent and Efficient Procurement of Ancillary Services by the System Operator” or AS-CSP Policy.

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Section 7.4 of the policy, the NGCP, the System Operator (SO), has to submit the Terms of Reference (TOR) prior to its publication of the Invitation to Bid (ITB) for the DOE’s approval.

The power grid company, ERC said, had violated the guidelines when it failed to publish and maintain on its website with DOE’s prior approval.

Disappointed

In a statement posted in its social media page, NGCP said the “willful disregard mentioned by ERC has to be put in the proper context.”

The company complied with the submission of the AS CSP hours after it was raised by DOE when Secretary Raphael Lotilla raised the concern when NGCP top officials, Chairman Henry Sy, Jr. and President Anthony Almeda, paid a courtesy to the new DOE chief two months ago.

But ERC issued a show cause order the next day, the statement said.

“We were sorely disappointed at the recent turn of events. It seems that duplicity is still the name of the game, and we are still dealing with the same economically motivated political maneuvers.”

The company assured, however, it will continue to cooperate with the industry’s leadership “if vested interests are set aside.” NGCP did not go into the details of explaining what it meant by vested interests.