Synergy Grid & Development Philippines Inc. confirmed on Thursday that the National Grid Corp. of the Philippines, operator of the country’s electricity grid, has paid fines imposed by the Energy Regulatory Commission for delays in certain projects.
Synergy holds 60 percent voting rights in NGCP, acquired through a share-swap deal that gave it 67 percent stakes each in OneTaipan Holdings Inc. and Pacifica2 Holdings. OneTaipan owns Monte Oro Grid Resources Corp., which holds a 30 percent stake in NGCP, while Pacifica2 owns Calaca High Power Corp., which also holds 30 percent.
“We confirm that NGCP paid the penalties under protest. Motions for Reconsideration of ERC’s decisions were filed on September 16, 2024, and December 10, 2024,” Synergy said. “Among other reasons, the alleged delayed projects have had no significant impact on NGCP’s operations, as it continues to efficiently provide transmission services across the country.”
The ERC imposed a fine of P15.8 million on NGCP for delays in 34 of 37 projects. These fines, along with higher transmission fees, were disclosed during a hearing of the House of Representatives’ Committee on Legislative Franchise, which questioned NGCP’s compliance with the provisions of its franchise.
Lawmakers pointed out that NGCP had continued to collect transmission fees on the delayed projects. They also raised concerns about the potential increase in power costs for consumers due to adjustments in transmission fees, even if major projects were completed. If uncompleted projects were excluded from the rate adjustment, ERC Chairwoman Monalisa Dimalanta noted that it could result in a refund of over P1 per kilowatt-hour instead of an increase of 12 centavos per kWh.
As a result, lawmakers have called for a thorough review of NGCP’s franchise, including concerns about its apparent breach of the 40 percent foreign ownership rule following the share swap with Synergy.
-0-
