Senator Sherwin Gatchalian on Wednesday said that the Senate Committee on Energy has been reviewing the performance of the National Grid Corporation of the Philippines and its compliance with its obligations under the Constitution, the law, its franchise, and concession agreement.
Gatchalian said that if NGCP will comply, then (there’s) no need to touch on their franchise. We are giving them time to correct them And if they will not make corrections or do not comply, that’s the time that we will take drastic (moves),” said Gatchalian.
Any recommendation from the Gatchalian committee will be referred to the Senate Public Services Committee which has the jurisdiction over the company’s franchise.
The senator said his committee’s review of the performance of the NGCP has been underway even before the recent rotational brownouts in some key areas in Luzon which triggered an inquiry in the upper chamber.
Energy Secretary Alfonso Cusi had said that a legislation must be crafted to amend NGCP’s franchise due to many factors.
Among them is the non-compliance with a DOE circular ordering NGCP to contract 100-percent firm contracts for ancillary services, which Cusi mentioned as one of the causes of the rotational brownouts in several areas in Luzon from end May to early June.
President Duterte met with NGCP and energy officials in Malacanang last Friday, June 25, to address the power interruptions in Luzon. Reports also say the alleged non-compliance of the electricity network concessionaire to the provisions of the contract that the NGCP signed with the government was one of the discussions during the meeting.