TransCo gets P9.4-M fine for lapses in project implementation
Friday, March 17, 2006
The Energy Regulatory Commission (ERC) has slapped penalties of P9.444 million to National Transmission Corporation (TransCo) for violations it committed in the implementation of at least 33 transmission and related facilities projects.
The regulatory body ruled that TransCo violated Section 9(d) of the Electric Power Industry Reform Act (EPIRA); when it went ahead with implementation of projects outlined in the Transmission Development Plan (TDP) prior to getting approval from the ERC.
The law’s provision states that: Transco can "improve and expand its transmission facilities, consistent with the Grid Code and the Transmission Development Plan (TDP) to be promulgated pursuant to this Act…Provided, that TransCo shall submit any plan for expansion or improvement of its facilities for approval by the ERC."
ERC noted that the spinoff transmission firm failed to secure prior approval for the following projects: Bronzeoak Transmission Line; Northern Negros T/L; Panay IV Transmission; Negros III transmission; Negros IV transmission; Cebu III transmission; Visayas Capacitor Project I; Leyte-Samar Reinforcement; Visayas Substation Expansion Projects; Negros V Transmission; Ormoc Substation Expansion; Leyte-Bohol Stage 3; Cebu-Mactan; Leyte-Cebu Interconnection Expansion; Mindanao Coal Association T/L; Mindanao Capacitor Project 1 and 2; Mindanao substation expansion; Bunawan switching station; Maco substation; Zamboanga City transmission line; General Santos-Tacuring-Nuling transmission project; Mindanao substation expansion; 69kV line projects and Mindanao sub-transmission projects 1.
The Commission initially looked at violations committed on 37 projects; but since TransCo was able to establish that some projects are being undertaken by independent power producers (IPPs); these were excluded from those imposed with penalties.
"Of the 37 projects, six were excluded from the computation of penalty because they were executed by IPPs as shown in the documents submitted by TransCo," the ERC has emphasized in its verdict.
The penalty, it was noted, was computed taking reference from the provisions of the Electric Power Industry Reform Act (EPIRA); wherein a fixed charge of P100,000 was set each for the 33 projects and multiplied 41,512 days at P100 per day.
posted by philpower @ 12:29 PM,
