NGCP: ERC audit the only option

National Grid Corporation of the Philippines (NGCP) reiterated it would only accept an audit by the Energy Regulatory Commission (ERC) even as Sen. Sherwin Gatchalian repeated a warning the company might lose its franchise if it did not submit to a Department of Energy (DOE)-led one.

In a statement meant to be read during a hearing at the Senate committee on energy, which Gatchalian chairs, NGCP said an “audit by the ERC is the only government audit prescribed by law.” The hearing was canceled because NGCP president Anthony Almeda did not attend.

Gatchalian warned “this would be the last time, and that he should be present in the next hearing.” The senator had said the committee wanted to hear from the NGCP pre­sident himself because his representatives “are lawyers who would only dish out statements from a legal perspective.”

Gatchalian and nine other senators are currently under self-quarantine after being exposed to a resource person from another hearing who turned out positive for COVID-19, the disease caused by the new coronavirus. The Senate has been shut down for disinfection. The next hearings have yet to be scheduled.

In their statement, NGCP said the Electric Power Industry Reform Act had identified “the ERC and only the ERC” to enforce the Philippine Grid Code, which governs the operation, maintenance and development of the national power grid.

But Gatchalian said NGCP’s concession agreement with the government has provisions “that would allow the government to inspect” the grid operator.

“[It is the] ERC when it comes to rates, pricing, Transco (National Transmission Corp.) and PSALM (Power Sector Assets and Liabilities Management Corp.) when it comes to performance,” the senator said.

“When you say performance, it’s a very broad term, the integrity of the grid should be part of the inspection,” he added.

NGCP said it could not agree to the proposed comprehensive system operations audit the DOE and Transco demanded the company to allow.

“In truth, Transco actually conducts, and NGCP permits, a regular periodic inspection of the substations and transmission assets nationwide,” NGCP said.

“In fact, Transco will conduct another inspection this March,” NGCP added.