NGCP scope of obligations clarified
By Nidz Godino
"As transmission service provider, NGCP can only give overview of current supply and demand situation and endeavor to dispatch any and all available power…it cannot intervene on matters concerning power generation," National Grid Corp. of the Philippines (NGCP) said in statement firmly refuted allegations suggesting its failure to stabilize transmission system, reiterating that its mandate is confined to transmission of power from producers to grid-connected areas of the country.
NGCP maintains its earlier pronouncements there was no transmission disturbance before tripping of Panay Energy Development Corp. Unit 1 at 12:06 in the afternoon on Jan. 2,2024.
"After this event, NGCP was able to recover transmission system and normalize voltage… normal voltage situation persisted until several power plants inexplicably tripped at 2:19 in the afternoon data from our system show no abnormality in voltage and system stability, despite this, critics persist on blaming NGCP for what are clearly problems arising from unplanned shutdowns of power generators… alarming to hear policymakers immediately make conclusions based on assumptions contrary to fact…we are firm in our position that system prior to 2:19 in the afternoon. multiple tripping was normal, and our actions were undertaken within protocols…any contrary statement is speculative, rather than using NGCP as scapegoat, we urge policymakers to be objective in their search for facts and not coddle certain sectors, this is not time to push personal or political agendas, but time for honest-to-goodness solution finding. ..we again reiterate our push for comprehensive industry-wide approach to resolve persistent power supply issues on Panay Island and elsewhere in the country, " NGCP said.
In line with latest incident, Energy Secretary Raphael Lotilla said department is in full support of calls made by legislative leaders and Panay local officials for legislative investigation, with view to revisit and review franchise of NGCP.
Lotilla said DOE will recommend to Congress review include separation and transfer of systems operation function from NGCP, focus on transmission network provider function.
"If they can't carry that out, why don't we therefore segregate it from them and they can focus on construction and operation of transmission grid," he said.
Lotilla said systems operation can instead be carried out by another entity which can focus exclusively on that particular function.
Sought for comment on this proposal, NGCP spokesperson Cynthia Alabanza said separating systems operation function will impact efficiency.
Alabanza also said "doing this would really cement reputation of Philippines as very risky investment area."
Meanwhile, Lotilla said DOE will also recommend to Congress authorizing Energy Regulatory Commission (ERC) to impose administrative penalties on transmission concessionaire of P2 million per day of violation or non-compliance with regulatory rules, or one percent of cost of delayed project based on ERC-approved project cost, whichever is higher.
NGCP refuted allegations of neglecting its responsibility to stabilize transmission system on Panay Island which led to large-scale power outage in parts of Western Visayas.
In statement addressing Panay generation failure, NGCP stressed it is mandated to "transmit power from producers to grid-connected areas to the country."
"As transmission service provider, NGCP can only give overview of current supply and demand situation and endeavor to dispatch any and all available power…it cannot intervene on matters concerning power generation," it said.
Power grid concessionaire explained it did not see any transmission disturbance before PEDC Unit tripped and several power plants later tripped "inexplicably."
"Data from our system shows no abnormality in voltage and system stability," NGCP said.
It decried critics who suggested it failed in its obligation to stabilize transmission system as it emphasized it took actions within its protocols.
"We also take exception to allegations we were less than transparent in providing information to public…we provide regular updates to all stakeholders, including media and government units (LGUS), through print, radio, broadcast, social media, and text blasts," power grid concessionaire said.
NGCP also said ongoing power interruption should not be exploited for personal or political motives and called on government and concerned agencies to provide solution for power issue.
"We again reiterate our push for comprehensive industry-wide approach to resolve persistent power supply issues on Panay Island and elsewhere in the country," it pointed out.
Statement of power grid concessionaire was issued after Department of Energy (DOE) called out power grid concessionaire in separate statements on Wednesday and Friday.
In January 3 statement, DOE said NGCP has responsibility of balancing power grid and should have anticipated power disturbance.
"NGCP is in position to anticipate system disturbance such as what happened yesterday, which unfortunately resulted in isolation of Panay from rest of Visayas grid due to simultaneous tripping of power plants caused multiple power interruption affecting other power plants and distribution utilities," DOE Undersecretary Rowena Cristina Guevara said in statement.
In January 5 statement, on the other hand, DOE then reminded NGCP to implement Transmission Development Plan to "ensure reliable and efficient delivery of electricity."
It was also mentioned ERC reported 37 delayed transmission projects in July 2023 and that NGCP failed to meet its proposed timelines to complete projects.
According to Mayor Jerry Treñas of Iloilo City, located on Panay Island, city can end up losing up to P500 million day because of power outage.
"In three days, we would have lost P1.5 billion…what a way to start new year!" Treñas said in briefing.
As of writing, NGCP has restored and normalized all power operations on Panay Island. Power interruption lasted from January 2 to January 5.
President Ferdinand Marcos Jr. also in video statement ordered ERC to reset NGCP rates following massive power outage.
"Accountability lies within NGCP, they are tasked with grid stability…stability involves proactive responses to breakdowns and unexpected events… duty NGCP has not fulfilled adequately," FMJ said.
House Speaker Martin Romualdez also proposed to allocate some funds from Maharlika Investment Fund to NGCP to prevent future blackouts and improve its operations.
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