ERC Chairperson Announces 6-8 Weeks Timeline for Western Visayas Blackout Probe

MANILA: The Energy Regulatory Commission (ERC) has projected that the investigation into the recent massive power outage in Western Visayas may conclude within six to eight weeks. This announcement was made during the Saturday News Forum in Quezon City.

According to Philippines News Agency, the probe will not only focus on the National Grid Corp. of the Philippines (NGCP) but also on the operators of the power plants involved. Dimalanta stated that the potential sanctions against both the NGCP and the power plant operators would be determined based on the findings of the investigation.

Dimalanta elaborated, ‘We are not immediately excusing the power plants. Among the six involved, there might be issues with their adherence to standards. For instance, if any of them breached the Grid Code by disconnecting earlier, they could face penalties. It’s not only about the NGCP; if we find lapses in their responsibilities, they will be held accountable.’

‘The investigation is expected to take around six to eight weeks. Regarding whether it’s only NGCP’s responsibility, I believe I can provide a more definitive answer after the investigation,’ she added.

The ERC chairperson also noted that the NGCP is under scrutiny due to its central role in operating, maintaining, and developing the country’s state-owned power grid. More information about the regional blackout is expected to be gathered by the ERC by next week.

The power outage affected the islands of Panay, Guimaras, and Negros, following the trip-offs of the Panay Energy Development Corp. (PEDC) Units 1 and 2, as well as the Palm Concepcion Power Corp. Unit 1. Dimalanta confirmed that the power supply in Western Visayas is now ‘normal and stable.’

In response to the power crisis, President Ferdinand R. Marcos Jr. instructed the ERC to expedite the completion of the rate reset review for NGCP. This review includes a PHP7.09 billion discrepancy between the ERC-determined annual revenue requirement (ARR) of NGCP, which amounts to PHP36.7 billion, and the annual maximum revenue (MAR) of PHP43.789 billion collected by NGCP from consumers through transmission charges from 2016 to 2020. This difference is likely to result in a refund to consumers, leading to lower transmission rates on electricity bills. The ARR of PHP36.7 billion is part of the ERC’s partial initial determination for NGCP’s rate reset covering 2016 to 2020.

Dimalanta emphasized the importance of the rate reset in preventing similar power outages in the future. She said, ‘The effect of resetting the rates is nationwide. It enables us and NGCP to set future investment requirements. Our goal is to determine the necessary investments to avoid such incidents and to enhance the grid’s resilience, responsiveness, and adaptability to the current and future generation mix.’