NGCP’s Project Delays Drive Up Electricity Costs, Pose National Security Risks

The National Transmission Corporation (TransCo) has pointed to significant delays in the National Grid Corporation of the Philippines’ (NGCP) transmission projects as a primary cause of rising electricity costs and operational inefficiencies impacting millions of Filipinos. During a recent House Committee on Legislative Franchises hearing, TransCo Vice President Dinna Dizon highlighted that NGCP managed to complete only 29% of its planned projects, which is 75 out of 258, while spending just 10% of its allocated capital expenditures. Dizon noted that many projects were completed beyond the fourth regulatory period, with some delays stretching over nine years. She also criticized the ‘as spent’ approach used by the Energy Regulatory Commission (ERC) for calculating NGCP’s maximum annual revenue, which has increased transmission rates by approximately PHP0.80 per kilowatt-hour. Dizon stressed the need for more accurate rate-setting to prevent consumers from bearing unnecessary costs and to facilitate the integration of renewable energy into the grid. Additionally, former TransCo president Melvin Matibag raised concerns about national security risks associated with NGCP’s operations, particularly its use of Chinese technology and the limited oversight by the Philippine government. Matibag pointed out that the SCADA system, supplied by China’s NARI Group Corporation, had been accessed remotely twice, raising alarms about potential vulnerabilities. He also expressed frustration over TransCo’s inability to inspect NGCP’s operations, likening it to being barred from entering one’s own home.