Workers fix a power transmission line near Tagaytay City on January 21, 2020. Jonathan Cellona, ABS-CBN News/file

MANILA — The Energy Regulatory Commission (ERC) has imposed a total of P15.8 million worth of fines on the National Grid Corporation of the Philippines (NGCP) over "unjustified delays" in 34 out of 37 projects.

ERC chairperson Monalisa Dimalanta made the revelation during the House Committee on Legislative Franchises hearing on Monday.

"We investigated 37 delayed projects. As required by due process, we required NGCP to submit their explanation. Out of the 37 delayed projects, we found that there were unjustified delays for 34 projects. Because of the number of projects, this was not taken up in one commission meeting," she told lawmakers.

Panel chairperson Parañaque City Rep. Gus Tambunting asked if the penalties were enough to compensate the economic impact of the delays. 

"That’s averaging around P500,000 per project? How were the fines established? Is it a fixed rate?" he asked. 

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The ERC head said the fines were based on a schedule of fines and penalties. 

"The first two instances of penalties are only penalized, I think, at P100,000 per violation and then the succeeding ones are at P500,000. So there was a graduation of penalties," Dimalanta explained.

"The cost of these penalties couldn’t really be compared to the cost of the delays, but we are bound by the schedule of fines and penalties which capped it at P500,000," she added.

The ERC chair said the NGCP has already paid the penalties, but some are still "paid under protest" as the latter will explore all legal remedies.

NGCP Assistant Vice President and spokesperson Cynthia Alabanza explained why the agency decided to protest some findings.

"The reason we are exploring our options is because the penalties, we've seen also there are misalignment in timelines. There are several projects that are subject of the ERC's penalty order," she said.

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"There was really an issue on the alignment of timelines. I do know chair Mona is working hard so we can align these. Same from NGCP po, meron kaming regulatory delays na hinaharap. Ginagawa po namin ng paraan para mabawasan yung actual delay on implementation," Alabanza explained.

She also cited a Supreme Court ruling that stated they cannot implement projects without the ERC's approval.

Alabanza added they have no backlogs with system impact studies (SIS). Those that are still pending are within the allowed 60-day period to issue the SIS.

Energy Undersecretary Sharon Garin explained there is the queuing part and the actual SIS part, which may contribute to the delays. 

"Before taon-taon din para makapila ka. Also it takes time for them to finish. Halimbawa magaapply ngayon, ang iba maghihintay ng isang taon or six months para mapila ka sa SIS. It also depends on NGCP," she said.

The NGCP clarified the 60-day allowable period only refers to the approval of study, not including the queueing.

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