ERC clears P5.5-B NGCP capex

The Energy Regulatory Commission (ERC) has re-approved the capital expenditures of the National Grid Corp. of the Philippines (NGCP) amounting to P5.5 billion for this year, which was earlier approved by suspended chairman Jose Vicente Salazar.

The commission has reviewed NGCP’s application and the provisional authority it granted to implement the P5.5 billion spending this year, which is part of the P113.4 billion, fouryear budget it asked for.

“The issue for the Commission’s resolution is whether Applicant NGCP has satisfied the requirements provided by law for the grant of provisional authority to implement its proposed capital expenditure (capex) projects for the years 2017 to 2020,” it said.

The approval was given last Feb. 24, when Salazar was still sitting as chairman.

“However, due to supervening events, the Order could no longer be promulgated without undergoing reconfirmation by the Commission En Banc,” ERC said.

Salazar was placed under a 90-day preventive suspension in May for deceiving Malacañang in filing his travel authority and designating somebody without proper authority as officer-incharge while he was abroad.

Malacañang has extended Salazar’s suspension for another four months without pay for insubordination.

In the Commission En Banc findings, NGCP has satisfied the due process requirements and has proven the need for the grant of provisional authority. Under the provisional authority, the grid operator was cleared to spend for 58 out of 65 proposed capex projects.

However, seven projects failed to meet the necessity and urgency standard required for the grant of provisional authority.

Of the total projects, 20 were classified towards grid expansion and grid reliability; 23 projects were geared towards supporting its operations as well as the Wholesale Electricity Spot Market; and 21 were identified as nonnetwork projects and replacement program for its woodpoles and associated assets.

“Consequently, NGCP should await the final approval and resolution of the instant Application before it could implement the above projects,” ERC said.