BIZ BUZZ: Regulators ignoring NGCP gains?
Energy regulators last week delivered a one-two punch to National Grid Corp. of the Philippines (NGCP), with officials first blaming the operator of the country’s transmission network for the failure of a recent green energy auction, and then very publicly ordering the private firm to explain certain delays in its projects.
These twin moves are, of course, the latest developments in the ongoing tension between energy regulators of the Marcos administration and the company that is 60-percent owned by the Filipino groups of Henry “Big Boy” Sy Jr. and businessman Robert Coyiuto Jr. and 40-percent owned by the State Grid Corporation of China.
After last week’s green energy auction by the Department of Energy (DOE)—which was shunned by many renewable energy firms—market players were near-unanimous in pointing out that the price caps set by the regulator were “unrealistic” (meaning “too low”).
In particular, solar energy firms stayed away from the auction because regulators set a price cap of P4.40 per kilowatt hour when the average market price now stands between P5.50 and P6 per kilowatt hour.
So despite the DOE inviting bids for over 6,700 megawatts of solar energy, less than 2,000 MW of bids were submitted.
But lo and behold: when energy officials gave a statement about the auction’s failure to attract bidders, who else was to blame according to energy officials but NGCP? Supposedly, bidders stayed away from the auction because of concerns about NGCP’s transmission facilities. Hmmm.
But that wasn’t the only blow regulators sent NGCP’s way. Immediately after that, the Energy Regulatory Commission sent the firm a show cause letter ordering them to explain delays in their projects.
“Note how they’re nitpicking,” said one company insider pointing to two-page list of projects many of which have been completed, while the bulk are at completion rates of 80 to 90 percent.
“The first few projects are completed, and some are just delayed by just a few months,” the company insider said, adding that the regulator “conveniently left out” the projects that are delayed because the ERC had yet to approve them.
Of course, if history is any indication, it seems like NGCP’s explanations are falling on deaf ears as long as energy regulators are bent on tightening the noose around the firm’s neck.
—Daxim L. Lucas
Solaire North opening target
Solaire Resort North, the second Solaire-branded property of billionaire Enrique Razon Jr., will open its doors by the first quarter of 2024, the company officially announced yesterday.
So confident is the management behind this development of Bloomberry Resorts that they started hiring staffers for the hotel and casino last weekend, announcing that they will be needing talent and manpower to over 4,200 jobs.
Naturally, this is good news for the project’s host city —Quezon City—from which the bulk of employees are expected to hail.
In fact, the so-called career caravan was held last weekend at the Quezon City Hall grounds, with the city’s officials and dignitaries present.
While the finishing touches are being applied on Solaire North’s property, the firm opened a hiring office at the adjacent Ayala Malls Vertis North where applicants can be processed.
—Daxim L. Lucas INQ
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