Transmission operator National Grid Corp. of the Philippines plans to file a motion for reconsideration with the Energy Regulatory Commission over the imposition of a P5-million fine for the former’s alleged failure to contract ancillary services, its parent company said Thursday.
Synergy Grid and Development Philippines Inc., whose sole operating asset is NGCP, said in a disclosure to the stock exchange it was informed of NGCP’s intention to file the motion “within the period allowed by the rules and regulations.”
SGP said it received a notice from NGCP on Wednesday that the ERC, in a decision promulgated on Oct. 27, imposed a penalty of P5.1 million for alleged non-compliance with Department of Energy Circular DC2021-10-0031 requiring the procurement of ancillary services or reserves.
The ERC directed NGCP to submit the terms of reference and Instructions to bidders to the Department of Energy in compliance with Sections 7.4 and 7.5 of the AS-CSP Policy within 30 days from the receipt of the decision.
NGCP said in a separate statement it was 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,” NGCP said.
NGCP reacted to the ERC statement that no amount of monetary penalty could sufficiently equate to or compensate for the “willful disregard by NGCP” of validly issued regulations of the Philippine government and its administrative agencies.
“The alleged willful disregard mentioned by the ERC, this has to be put in the proper context, and our acts shouldn’t be taken in isolation. We were wary and defensive, given the overtly biased and intrusive political atmosphere prevailing at the time,” the company said.
NGCP said the relentless attacks the company suffered previously and the “fault-finding where there was no fault to be found was a clear indication to us that this, and other contemporaneous moves undertaken by certain players in the industry, were part of a larger, orchestrated plan to put their economic interests above ours, even at the expense of the consumers.”
NGCP said it welcomed the new leadership and the fresh start it offered as it hoped for a more cooperative working relationship with the government energy agencies.
NGCP said it remained willing to work with the industry leadership “if vested interests are set aside, and fairness made to prevail.”
“We are still hopeful that national economic recovery and energy stability will be prioritized above self-interest,” it said.
ERC warned NGCP that non-compliance with laws, rules, orders and regulations issued by authorities might result in the cancellation of its certificate of public convenience and necessity and the endorsement to the Congress of the revocation of its legislative franchise.
NGCP holds a 25-year concession and a 50-year Congressional franchise to expand and operate the country’s power transmission grid.
It is the sole and exclusive operator of the Philippines’ nationwide transmission network linking power generators and distribution utilities to deliver electricity to end-users across Luzon, Visayas and Mindanao.