Senators on Wednesday, May 24 slammed the National Grid Corporation of the Philippines (NGCP) for charging consumers over projects that are still not completed.
Based on the records of the Energy Regulatory Commission (ERC) there are 72 delayed NGCP projects, including six that are energy projects of national significance (EPNS).
“Unfortunately”, ERC chairperson Monalisa Dimalanta said that under the Interim Maximum Annual Revenue (iMAR), the NGCP is allowed to do so.
“Consumers are disadvantaged at the onset because we are not seeing the projects. We are not enjoying the benefits. But we are being mandated to pay for those uncompleted projects,” Gatchalian lamented during the Senate Committee on Energy’s investigation into the massive power outages that hit parts of the country.
Sen. Rafael “Raffy” Tulfo, chairman of the energy panel, also called out the ERC for giving the NGCP such authority.
“Isn’t that so shameless? Why did you allow it? They should charge only for the projects they have completed. That’s just right and proper because they spent on those,” Tulfo pointed out.
“Have some shame. Your consumers are not yet benefitting from the projects. So stop charging first. Don’t be shameless,” he emphasized.
NGCP spokesperson Cynthia Alabanza, however, explained that the iMAR was generally intended to support the firm’s operational and capital expenditures as determined by the ERC.
But the collections, she said, also go to completed projects, that need operational funding.
“But the reality is, we do suffer both external and internal delays. That’s why if it’s delayed, it’s not because we don’t want to finish it, we just encounter a lot of hurdles,” Alabanza said.
She later on apologized to the panel for the NGCP’s slow completion of its development projects.
Energy Undersecretary Sharon Garin also told the committee that the Department of Energy (DOE) and the ERC’s hands are tied on this matter, pointing out that the ERC can only impose a P50million maximum fine for a violation.
But Gatchalian said the ERC and the DOE should put its foot down and impose penalties and fines for the NGCP over its failure to complete its projects. He also said the ERC should review its policies on NGCP.
“If a four year project is delayed and made into a 40-year project…there is a perverse intention,” the senator insisted.