TransCo Highlights NGCP’s Project Delays as Cause of Rising Power Costs

In a recent hearing by the House Committee on Legislative Franchises, the National Transmission Corporation (TransCo) pointed out that delays in projects managed by the National Grid Corporation of the Philippines (NGCP) are significantly contributing to increased electricity costs and operational inefficiencies, impacting millions of Filipinos. TransCo Vice President Dinna Dizon emphasized that only 29% of NGCP’s planned projects were completed, with many projects facing delays of over nine years. Dizon criticized the ‘as spent’ method used by the Energy Regulatory Commission (ERC) for calculating NGCP’s maximum annual revenue, which she said has inflated transmission rates by approximately PHP0.80 per kilowatt-hour. She also noted the broader economic implications, such as the inability to integrate renewable energy sources due to these delays. Dizon urged for more precise rate-setting to prevent consumers from bearing unnecessary costs. 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 lack of oversight by the Philippine government. Matibag highlighted incidents where the power grid was remotely accessed, underscoring potential vulnerabilities.