By Junex Doronio

MANILA — The Energy Regulatory Commission (ERC) has imposed a fine of P15.8 million on the National Grid Corporation of the Philippines (NGCP) for “unjustified delays” in 34 out of 37 delayed projects, ERC chairperson Monalisa Dimalanta revealed on Monday during a briefing by the House Committee on Legislative Franchises.

“We investigated 37 delayed projects. As required by due process, we asked NGCP to submit their explanation,” Dimalanta said.

“Out of the 37 delayed projects, we found that there were unjustified delays in 34 projects,” she noted.

The fines were based on a penalty schedule established by the ERC. Dimalanta explained, “The first two instances of penalties are fined at P100,000 per violation, and then the succeeding ones are fined at P500,000. So, there’s a graduated scale for penalties.”

Parañaque City Rep. Gus Tambunting, chair of the House Committee on Legislative Franchises, raised concerns about the adequacy of the penalties compared to the economic impact of the delays.

“That averages around P500,000 per project. How were the fines established? Is it a fixed rate?” he asked during the hearing.

Dimalanta acknowledged the limitations of the penalty system, stating, “The cost of these penalties can’t really be compared to the cost of the delays, but we are bound by the schedule of fines, which caps it at P500,000.”

NGCP has reportedly paid the fines, but Dimalanta disclosed that some payments were made under protest as the company plans to explore legal remedies.

During the hearing, NGCP Assistant Vice President and Head of Public Relations Leonor Felipa Cynthia Alabanza defended the company’s actions, citing regulatory hurdles and external factors as contributors to the delays.

Many critics view the delays in these critical infrastructure projects as having significant implications for the country’s energy security and economic stability.

ERC’s findings are expected to fuel ongoing legislative efforts to strengthen oversight of NGCP’s operations and ensure the timely delivery of energy infrastructure projects.

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