The National Grid Corporation of the Philippines (NGCP), the privately-owned operator of the country’s power transmission network, is under investigation and possible sanctions for its alleged role in the recent power outages that affected several regions, including Metro Manila and Panay Island.
The Department of Energy (DOE) and the Energy Regulatory Commission (ERC) have launched separate probes into the NGCP’s compliance with its concession agreement and the Electric Power Industry Reform Act (EPIRA) of 2001, which mandate the NGCP to ensure the reliability and security of the power grid.
The DOE said that it has issued a show-cause order to the NGCP, asking it to explain why it failed to prevent the power interruptions that occurred on January 5 and 6, which were attributed to the tripping of several transmission lines and power plants. The DOE also questioned the NGCP’s decision to declare red and yellow alerts, which signal insufficient power supply, despite the availability of sufficient generating capacity.
The ERC, meanwhile, said that it is conducting an audit of the NGCP’s performance and financial transactions, as well as its compliance with the grid code and the transmission development plan. The ERC also said that it is pushing for an amendment of the EPIRA to redirect the penalties imposed on the NGCP and other power industry players to be used as refunds to the consumers affected by the power outages.
The NGCP, which is partly owned by a Chinese state-owned firm, has also faced allegations of security and spying risks, as well as exorbitant dividends amid the power crisis. Several lawmakers have called for a congressional inquiry and a review of the NGCP’s franchise, which is set to expire in 2033.
The NGCP has denied any wrongdoing and said that it is cooperating with the government agencies and Congress. The NGCP also said that it is implementing various projects to improve the power transmission system and to address the challenges posed by the growing demand, the aging infrastructure, and climate change.
The NGCP is responsible for operating, maintaining, and developing the country’s transmission network, which connects the power generators to the distribution utilities and the end-users. The NGCP is regulated by the ERC and supervised by the DOE. The NGCP is also required to coordinate with the Philippine Electricity Market Corporation (PEMC), which operates the Wholesale Electricity Spot Market (WESM), where the electricity is traded.
