Thursday, March 12, 2020

NGCP open to ERC audit


Danessa Rivera (The Philippine Star) - March 11, 2020 - 12:00am

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) reiterated its willingness to be audited by government through the Energy Regulatory Commission (ERC).
NGCP issued the statement after the Senate Committee on Energy said the grid operator failed to submit to a mandatory audit as ordered in the previous hearing.
Senate Committee on Energy chairman Sherwin Gatchalian initially gave NGCP until Feb. 10 to comply with the order to subject its operations to a mandatory audit following national security concerns.
The deadline has been extended until Feb. 17 prior to NGCP’s request for an extension.
“NGCP maintains that it has always been amenable to a government audit so long as it is done by the independent quasi-judicial body authorized by law – the ERC,” NGCP said in a statement.
Being audited by the ERC is pursuant to the Electric Power Industry Reform Act of 2001 (EPIRA) which states that the ERC is tasked to promulgate and enforce the Philippine Grid Code – a code that governs the safe and reliable operation, maintenance and development of the national grid.
“At the risk of stating the obvious, the ERC is part of government and the audit by the ERC is the only government audit prescribed by law,” NGCP said.
ERC earlier said it was finalizing the terms of reference of the NGCP system audit, which is targeted within the first quarter.
Meanwhile, NGCP said it could not agree to the proposed comprehensive system operations audit demanded by the Department of Energy (DOE) and the National Transmission Corp. (TransCo).
The proposed audit aims to assess or determine NGCP’s functionality and controllability, its preparedness, and its vulnerability.
“Such an audit will allow TransCo to make its own determination of whether NGCP’s system operations ensure the reliability, security and integrity of the grid, in direct contravention to the concession agreement. These are determinations that only the ERC can make under Sections 7.03 and 10.01,” NGCP said.
“It is very clear, therefore, that PSALM’s or TransCo’s right to ‘inspect’ or ‘audit’ NGCP under the concession agreement cannot encroach into matters that are within the exclusive regulatory power of the ERC,” it said.
The grid operator belied allegations that TransCo is not allowed to inspect its facilities when the state-run firm actually conducts a regular periodic inspection of the substations and transmission assets nationwide as defined under the concession agreement.
“In fact, TransCo will conduct another inspection this March. It is a regular, continuing, and ongoing inspection. This physical inspection is apart from its access to NGCP’s books and financial records,” NGCP said.
A Senate hearing on the national security implications and operations of the NGCP was set Tuesday. However, the session was cancelled due to the non-attendance of NGCP president and chief executive officer Anthony Almeda due to sickness.
The Senate Committee on Energy directed NGCP to submit a medical certificate.

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