House probes delays in 200 power transmission projects ahead of expected extreme weather events

THE House of Representatives is looking into the reported delays in the implementation of more than 200 electricity transmission projects ahead of the expected extreme weather conditions next year.

The House Committee on Legislative Franchises, chaired by Paranaque City Rep. Gus Tambunting, on Monday held another briefing on the projects of the National Grid Corporation of the Philippines (NGCP), inviting officials from the Department of Energy (DOE), Energy Regulatory Commission (ERC) and other stakeholders to speak on the matter.

The committee called for the briefings as early as July this year in anticipation of the impact of the extended wet season La Niña.

The panel has also received three resolutions from the House plenary calling for an investigation into NGCP’s power transmission project delays and the transmission monopoly’s alleged violations of the terms and conditions of its legislative franchise.

At the start of Monday’s hearing, Tambunting told his colleagues that the House remains “committed to ensuring its franchise grantees are prepared to deliver services to their respective areas.”

He said in April this year, “extreme heat led to a surge in the country’s electricity demand, causing power plant shutdowns, triggering alerts, and resulting in widespread power outages that disrupted commerce and severely impacted communities.”

To address these issues, he said the committee took the initiative to call stakeholders, particularly NGCP, DOE, the agency responsible for ensuring reliable, sufficient and affordable electricity supply, and ERC, the state regulator.

“Through our briefings, it was revealed that over 200 critical transmission projects outlined in the latest approved 2023 Transmission Development Plan were significantly delayed, failing to meet their projected timelines,” he said.

He added that although electricity producers have substantial power generation capacity in development, “the absence of necessary transmission systems poses a risk of power supply deficits.”

“This challenge is particularly pressing as the country transitions to renewable energy sources, aligning with its commitment to combating climate change. This additional generation capacity is vital as rising temperatures drive up electricity demand and increase the likelihood of power plant shutdowns and outages,” Tambunting stressed.

He pointed out that it is important for the committee to look into the reported power transmission project delays “as we head into the new year and brace for extreme weather anew.”

In the course of Monday’s briefing, Deputy Speaker and Quezon Rep. David Suarez asked the DOE and ERC to submit to the committee a list of approved transmission infrastructure projects, their implementation timelines, which projects are delayed and why, and completion schedules, among other relevant information.

In its previous hearings, the legislative franchises panel learned that the ERC has fined NGCP P15.8 million for “unjustified delays” in 34 out of 37 projects.

Tambunting said the fines were too small compared to the inconvenience NGCP’s failure to complete its transmission facilities on time is causing electricity users.

He said the transmission company is making tens of billions a year in net profits and could readily afford a P16 million fine.

In response, ERC Chairperson Monalisa Dimalanta cited the limitations of the penalty system under the law.

“The cost of these penalties couldn’t really be compared to the cost of the delays, but we are bound by the schedule of fines and penalties, which are capped at P500,000 (per project),” she said.

NGCP is a transmission monopoly. It inherited the transmission lines, stations and similar facilities of state-owned National Power Corporation. It is 40-percent owned by a Chinese state company, with 60-percent ownership held by local big business partners.

In a recent hearing, lawmakers learned that between 74 percent and 92 percent of NGCP’s annual net profits of more than P20 billion was paid to its shareholders.

The three resolutions seeking an inquiry into NGCP’s transmission facilities implementation delays and alleged violations of its legislative franchise were filed by Reps. Dan Fernandez of Laguna, Luis Raymund Villafuerte of Camarines Sur, Brian Yamsuan of Bicol Saro Party-list, Maria Rene Ann Lourdes Matibag of Laguna, Ray Reyes of Anakalusugan Party-list and Rodante Marcoleta and Carolyn Tanchay of Sagip Party-list.