By Myrna M. Velasco – February 12, 2017, 10:01 PM
from Manila Bulletin
The government, through Power Sector Assets and Liabilities Management Corporation (PSALM) and transmission asset owner National Transmission Corporation (TransCo), had flagged National Grid Corporation of the Philippines (NGCP) on at least four violations under their concession agreement (CA) for the privatized management of the transmission facilities.
The infringements include: Non-separation of accounting of NGCP’s related businesses; impleading TransCo in a civil case; failure to put TransCo as rightful owner of the properties acquired for transmission projects; and delayed submission of copies of regulatory filings for its rate reset and related cases with the Energy Regulatory Commission.
The two state-run firms then have prodded NGCP to immediately comply with the proposed remedial measures to keep the integrity of all provisions of their concession deal.
In a letter sent to NGCP President Henry T. Sy Jr. on December 21, 2016, PSALM and TransCo sought for “your faithful and religious performance of all the provisions of the CA… otherwise, this would leave us with no other recourse than to issue a notice of default.”
Finance Secretary Carlos G. Dominguez, who is also the chairman of TransCo and PSALM Boards, Energy Secretary Alfonso G. Cusi, and ERC Chairman Jose Vicente B. Salazar were in the courtesy copies of the letter sent to the NGCP chief executive.