Power grid holding firm Synergy Grid and Development Philippines Inc. (SGP) said the track record of National Grid Corporation of the Philippines (NGCP) “will speak for itself” amid the security concerns and performance issues raised by lawmakers.
“The National Grid Corporation of the Philippines relies on its overall good performance and service track record to defend against allegations of violations. NGCP has been investing hundreds of billions to strengthen the transmission system,” SGP, which indirectly holds 60 percent of NGCP, said in a statement.
Since taking over in 2009, SGP said the transmission rates have gone down. It cited the Energy Regulatory Commission’s (ERC) findings on its performance metrics and transmission services, which have significantly improved.
Also, NGCP has doubled substation capacity and constructed substantial transmission lines all over the country including interisland connection projects.
“NGCP believes and is confident that it has complied with its obligations under its franchise and the Concession Agreement and it shall continue to comply with all lawful directives and pursue its mandate faithfully,” SGP said.
The grid operator has once again caught the ire of lawmakers after rotational brownouts occurred in some parts of Luzon and Visayas recently.
Senator Grace Poe, who serves as chair of the Senate public services panel, has said her panel is open to a review of the 50-year congressional franchise of the NGCP.
“The committee will thoroughly scrutinize the performance of the NGCP and see if it has remained faithful to its signed franchise or if violations have been committed,” she commented during a recent hearing.
The State Grid Corporation of China (SGCC) has a 40-percent stake in NGCP. Sen. Raffy Tulfo, chairman of the Senate energy committee, said the ownership structure of the power grid could be put at risk.
“Chinese ownership of NGCP poses serious national security threat considering the current conflict between China and the Philippines over the West Philippine Sea,” said a statement from Tulfo’s office.
Separately, NGCP said it is fully aware that its franchise is a privilege granted by government and that it welcomes an audit that is being carried out regularly by the ERC “Our stakeholders can be assured that we remain committed to improving and delivering reliable power transmission services.”
For this year, NGCP has committed to finish more critical transmission projects that are part of its massive P440-billion investment in the next 13 years.
The grid operator will complete the Hermosa-San Jose 500-kilovolt transmission line project, Cebu-Negros-Panay Stage 3 backbone project, Nabas-Caticlan-Boracay transmission line project and Cebu-Bohol interconnection project. It will also start new projects, including the Batangas-Mindoro interconnection project, recently approved by the ERC.
“We continue to be hopeful that improvements in all three sectors of the power delivery system are in sync with each other, so that one sector is not made to be the sole or principal solution to challenges in the other sectors.”
For the past 14 years, NGCP said it has put up a total of 3,729 circuit-kilometers of transmission lines, 28 new substations, and an additional 31,190MVA of transformer capacity.