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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