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DOE eyes P2 million per day fine, review of tax perks of NGCP after Panay blackout

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ABS-CBN News

MANILA - The Department of Energy will support plans for a legislative probe of the country’s power grid operator including the imposition of hefty fines and a review of its tax perks, Energy Secretary Raphael Lotilla said on Friday.Lotilla issued the statement in the aftermath of the massive power outage that affected Panay Island this week, which he blamed on the National Grid Corporation of the Philippines.He said the DOE will support a legislative investigation into the incident and a review of the franchise of NGCP, including a possible fine of P2 million per day for violations or non-compliance with regulations. <figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2919306" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>The DOE will also call for a review of &quot;the special tax privilege of NGCP to pay only a 3 percent franchise tax in lieu of all other national and local taxes.” Lotilla earlier said the NGCP shouldered the “main accountability” over the <a href="https://news.abs-cbn.com/business/01/04/24/energy-chief-blames-ngcp-for-panay-blackout">power fiasco</a>. <div>‘DON’T BLAME US’</div>The NGCP also denied it is to blame for the massive power outage on Panay Island. “We firmly refute allegations suggesting that NGCP failed in its obligation to stabilize the transmission system,” the NGCP said in a statement.The company said its mandate is limited to the “transmission of power from producers to grid-connected areas of the country.” “It cannot intervene on matters concerning power generation,” the NGCP said. In an interview with ANC on Thursday, Lotilla said the NGCP could have prevented the “collapse” of the island’s grid if the company acted quickly after a power plant tripped. Lotilla said the NGCP could have called on the distribution utilities and electric cooperatives in Panay to reduce their load to prevent a sub-systemwide collapse.The NGCP meanwhile reiterated that there was no transmission disturbance before the tripping of one of the power generation plants in Panay (PEDC Unit 1 with 83 megawatts) at 12:06 p.m on Tuesday. “After this event, NGCP was able to recover the transmission system and normalize voltage. This normal voltage situation persisted until several power plants inexplicably tripped at 2:19 p.m.” The company said its data showed there was no abnormality in voltage and system stability. “We are firm in our position that the system prior to the 2:19 p.m. multiple tripping was normal, and our actions were undertaken within protocols. Any contrary statement is speculative,” the firm insisted. In a phone interview, NGCP spokesperson Atty. Cynthia Alabanza said there was no need for a load dropping that time.”At that time na nangyari ang situation, walang indikasyon sa sistema na dapat kaming mag-load drop. Kasi yung load dropping na yan, ginagawa yan para ma-control ang boltahe, ngayon at that time walang problema sa boltahe, stable siya so walang dahilan para mag-load drop kami,” she explained.The NGCP said it backs a comprehensive industry-wide approach to resolve the persistent power supply issues on Panay Island and elsewhere in the country. <div>UNFINISHED, DELAYED PROJECTS </div>Lotilla earlier also noted that the power outage could have been prevented if the NGCP had already completed the projects it was supposed to finish. The Energy chief said the Panay-Negros-Cebu backbone project was supposed to have been completed in December 2020, but it was moved 6 times to March 2024. The Mindanao-Visayas Interconnection Project meanwhile was supposed to be also completed in December 2020 but was moved for the 8th time to January 25, 2024. The NGCP however had blamed the <a href="https://news.abs-cbn.com/business/05/25/23/ngcp-deflects-blame-on-delayed-projects-defends-transmission-charges">delays </a>on restrictions posed by the COVID-19 pandemic as well as right-of-way issues.Lotilla meanwhile said the DOE will work to ensure NGCP fulfills its obligations.“We will give full support to the ERC [Energy Regulatory Commission] in completing the reset of NGCP’s rates, ensuring NGCP’s compliance with its legal obligations and resisting any attempt to delay or obstruct the implementation of regulatory measures,” Lotilla said. Iloilo City mayor Jerry Treñas said his city alone had lost around P1.5 billion because of the blackouts.Meanwhile, House Speaker Martin Romualdez in a statement called on the Energy Regulatory Commission (ERC) and the NGCP to conduct a thorough investigation into the massive blackout.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/05/24/romualdez-floats-maharlika-investment-in-ngcp-after-blackout">Romualdez proposes Maharlika fund investment in NGCP after massive Panay blackout</a></li></ul>Sen. Raffy Tulfo said the NGCP&#x27;s failure to maintain the country’s power grid warrants the review and eventual termination of its franchise.“Panahon na para mas mapabilis ang pagrerebisa at agarang pagtanggal ng prangkisa ng NGCP. Mahigit isang dekada at kalahati nang nagsasakripisyo ang taumbayan sa mga kapalpakan nila. Enough is enough,” Tulfo, Chairperson of the Senate Committee on Energy, said in a statement.Tulfo promised to review NGCP franchise which he already investigated through a Senate Resolution last year. The continuation of hearing to probe all the lapses of NGCP is set on Jan. 10. <div>- With a report from Johnson Manabat, ABS-CBN News</div>

The DOE said it will support a House probe into the Panay blackout and a review of the franchise of NGCP, including a possible fine of P2 million per day. 